Gateway Plaza Festival Walk Sandhill plaza Beijing Hong Kong Shanghai

Building Strength Shaping growth

Annual Report 2015/2016 Overview 01 Building Strength Gateway Corporate Profile Shaping Growth Plaza 02 Financial Highlights Beijing Listed on the Singapore Exchange Securities 04 Letter to Unitholders Trading Limited (“SGX-ST”) on 7 March 2013, 10 Year in Brief FY15/16 Mapletree Greater China Commercial Trust (“MGCCT”) is the first and only real estate Strategy investment trust (“REIT”) that offers investors the 12 Strategy 14 Nurturing Value opportunity to invest in best-in-class commercial 16 Maintaining Stability properties situated in prime locations in both 18 Driving Growth 1 Hong Kong and China. MGCCT is also the fourth 20 Pursuing Sustainability REIT sponsored by Mapletree Investments Pte Ltd (“MIPL” or the “Sponsor”), a leading real estate Performance development, investment and capital management 22 Property Portfolio company headquartered in Singapore. 34 Unit Price Performance 35 Financial Review As of 31 March 2016, MGCCT has a portfolio 40 Operations Review of three commercial assets, Festival Walk, 44 Independent Market Research Gateway Plaza and Sandhill Plaza, with a total lettable area of approximately 2.6 million square feet and governance & combined valuation of S$5,922.5 million2. Festival Sustainability Walk is a landmark territorial retail mall with an office 57 Trust Structure component located in Hong Kong. Gateway Plaza 58 Organisation Structure 60 Board of Directors is a premier Grade-A office building with a podium 64 Management Team area in Beijing, China. Sandhill Plaza is a premium (Corporate) quality business park development situated in 67 Property Management Festival Zhangjiang Hi-tech Park, Pudong, Shanghai. Team (Overseas) Walk 69 Risk Management Hong Kong 72 Investor Relations MGCCT is managed by Mapletree Greater China 74 Corporate Governance Commercial Trust Management Ltd. (“MGCCTM” or Report the “Manager”), a wholly-owned subsidiary of MIPL. 86 Sustainability Report To better align with investors’ interest, MGCCT is also the first Singapore-listed REIT to introduce a financials & Others management fee structure that is based on distributable 97 Financial Statements income and distribution per unit (“DPU”) growth, 145 Statistics of Unitholdings rather than assets under management (“AUM”) 147 Interested Person Transactions and net property income (“NPI”). 148 Notice of Annual General Meeting 151 Proxy Form Corporate Directory

1 Hong Kong refers to the Hong Kong SAR (Special Administrative Region). 2 Valuation on each property was carried out by Colliers International (Hong Kong) Limited as of 31 March 2016. Annual Report 2015/2016 1 OVERVIEW

Sandhill Plaza Shanghai STRATEGY PERFORMANCE GOVERNANCE & Su

Building stainabi strength l shaping ity growth FINANCIA In 2015, Mapletree Greater China Commercial Trust (MGCCT) embarked on a new phase of growth L with the acquisition of Sandhill Plaza in Shanghai, S & O

strengthening our portfolio of best-in-class assets thers comprising Festival Walk in Hong Kong and Gateway Plaza in Beijing. Their quality and strategic locations enable the portfolio to maintain a consistently high occupancy level.

With a proactive and disciplined approach towards asset, portfolio and capital management, the Manager will continue to shape further growth and capture sustainable returns for MGCCT’s investors. 2 Mapletree Greater China Commercial Trust Financial Highlights

Net Gross Property Revenue S$336.6m Income S$277.5 m FY15/16 FY15/16 19.7% 21.0% year-on-year year-on-year

(S$ million) (S$ million) 400.0 280.0 277.5

350.0 245.0 336.6 229.3 300.0 210.0 204.3 281.1 250.0 252.5 175.0

200.0 140.0

150.0 105.0

100.0 70.0

50.0 35.0

0 0 FY13/141 FY14/15 FY15/16 FY13/14 FY14/15 FY15/16

1 For a more meaningful comparison, the stub period from 7 to 31 March 2013 has been excluded.

Distributable Distribution Income S$199.9m per Unit 2 7. 248 cents FY15/16 FY15/16 12.3% 10.8% year-on-year year-on-year

(S$ million) (cents) 240.0 8 7.248 210.0 7 199.9 6.543 180.0 178.0 6 5.929 159.2 150.0 5

120.0 4

90.0 3

60.0 2

30.0 1

0 0 FY13/14 FY14/15 FY15/16 FY13/14 FY14/15 FY15/16

2 Available DPU for the financial year is calculated based on the income available for distribution for the year over the number of issued units as at the end of the year. Annual Report 2015/2016 3 OVERVIEW Consistent Growth in Distributable Income (DI) and DPU1 since IPO

Distributable Income DPU (S$ million) (cents)

100 1.923 2.0 1.854 STRATEGY 1.808 90 1.742 1.8 1.662 1.696 Distribution per Unit 1.606 1.587 1.560 80 1.518 1.6 1.455 1.394 70 1.4

60 1.2 PERFORMANCE 53.0 50 49.5 51.0 1.0 Distributable Income 47.4 45.1 46.3 42.6 42.1 43.5 40 40.6 0.8 37.1 38.8

30 0.6

20 0.4 GOVERNANCE & Su 10 0.2

0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY13/142 FY13/14 FY13/14 FY13/14 FY14/15 FY14/15 FY14/15 FY14/15 FY15/16 FY15/16 FY15/16 FY15/16

1 The DPU per quarter is calculated based on the income available for distribution for the quarter over the number of issued units as at the end of the quarter. 2 Quarter results for 1Q FY13/14 excludes the stub period from 7 to 31 March 2013. Distributable income for the period from 7 March to 30 June 2013 = $46.1 million.

Total DPU for the period from 7 March to 30 June 2013 = 1.7337 cents. stainabi l ity Proactive Capital & Risk Management FINANCIA Average Term to Average All-in Maturity for Debt Cost of Debt

As of 31 March 2016 As of 31 March 2016 % L 3.01 years 2.83 S & O thers Expected Percentage 1H FY16/17 4 DI More than of Debt Fixed 3 Hedged into SGD As of 31 March 2016 77.0 % As of 31 March 2016 70.0 %

3 Interest cost on 77.0% of the total debt was fixed. 4 For the period from 1 April to 30 September 2016.

Portfolio Valuation Distribution Yield FY15/16 Based on closing unit 10.7% price of S$0.955 FY14/15: S$5.3b S$5.9 b on 31 March 2016 7.6 % 4 Mapletree Greater China Commercial Trust Letter to unitholders

Right Mr Frank Wong Kwong Shing Chairman and Independent Non-Executive Director

Left Ms Cindy Chow Pei Pei Executive Director and Chief Executive Officer

Dear Unitholders,

On behalf of the Board of Directors of domestic consumption, while of the Manager, we are pleased to reducing reliance on manufacturing From IPO to the present MGCCT’s Annual Report and infrastructure investments. to Unitholders for the financial year end of March 2016, from 1 April 2015 to 31 March 2016 Building Strength & we have delivered (“FY15/16”). Shaping Growth At MGCCT, we have maintained a cumulative DPU FY15/16 was a challenging year our focus on building strength of 20.112 cents at for businesses. The markets that and ensuring our assets remained a return of 21.6%. we operate in were not spared. resilient when navigating through In Hong Kong, the value of total retail challenging market conditions. Including a price sales was down 6.4%1 in FY15/16 We have undertaken prudent capital appreciation of compared to FY14/15. The continued and risk management and captured slowdown in inbound tourism, the the right opportunities to shape 2.7% over the period, uncertain economic outlook and future growth. MGCCT achieved the total return market volatility impacted local robust organic growth through consumption sentiment. China’s gross proactive asset management achieved amounted domestic product (“GDP”) growth of our two existing assets, to 24.3%. moderated to a 25-year low of 6.9% in 2015, as the ongoing reforms by the world’s second largest economy gravitated towards the expansion of 1 Figures are from the Hong Kong Census and Statistics Department’s Monthly Survey of Retail Sales Reports as the services sector and the stimulation published for the months of March 2015 and March 2016. Annual Report 2015/2016 5 OVERVIEW and we established MGCCT’s Festival Walk presence in Shanghai through – A Favourite Mall our first acquisition of Sandhill Plaza Among Shoppers7 in June 2015. In FY15/16, Festival Walk delivered 14.6% and 15.5% growth in gross

Through these efforts, MGCCT revenue and NPI respectively STRATEGY has delivered a third consecutive compared to FY14/15, despite year of good results since listing an increasingly challenging retail on 7 March 2013. Comparing FY15/16 market and ongoing renovations to the last financial year, portfolio at the cinema8, which resulted in gross revenue of S$336.6 million a moderate drop in retail sales increased by 19.7% and NPI of and footfall by 5.3% and 3.3% PERFORMANCE S$277.5 million was up by 21.0%. respectively, year-on-year. The mall Total distributable income in FY15/16 maintained its track record of 100.0% Distribution was S$199.9 million, an increase of occupancy level for retail and office Per Unit S$21.8 million (12.3%) compared to space as of 31 March 2016, and FY15/16 the previous financial year. The total achieved an average effective rental DPU of 7.248 cents1 for FY15/16 uplift of 37% for retail leases9 that translated to a distribution yield of expired during FY15/16 compared 7. 248 cents GOVERNANCE & Su 7.6%, based on the closing unit price to preceding rental rates. of S$0.955 as of 31 March 2016. The mall’s resilient performance From IPO to the end of March 2016, is largely attributed to its strategic Distribution yield we have delivered a cumulative DPU location above the Kowloon Tong of 7.6% based on of 20.112 cents2 at a return of 21.6% MTR station, the strong local

closing unit price stainabi based on the IPO Price of S$0.93. catchment at Kowloon Tong Including a price appreciation of and its focus on mid-tier and of S$0.955 as of 2.7%3 over the period, the total affordable brands. 31 March 2016. return achieved amounted to 24.3%. l ity International retailers continue to The acquisition of Sandhill Plaza choose Festival Walk as a preferred and better rental performance mall. Some of the brands that were also led to a 10.7% increase in introduced over FY15/16 include FINANCIA the appraised4 portfolio value from kate spade new york, fresh, GEOX, S$5,349 million as of 31 March Nespresso, Nike Basketball and

2015 to S$5,922 million as of L

Zara Home. New F&B brands S & O 31 March 2016. Correspondingly, such as the Vietnamese fine dining

Net Asset Value (“NAV”) per Unit thers restaurant An Nam and sen-ryo 1 FY15/16 DPU of 7.248 cents is based on the over the same period improved Japanese restaurant’s flagship store distributable income for the period 1 April 2015 5 to 31 March 2016 of S$199.9 million over the total from S$1.198 to S$1.239 . added to the mall’s wide range of issued units of 2,757,579,017 as of 31 March 2016. dining choices. Working closely 2 Comprising six distributions paid out to Unitholders from FY13/14 to FY15/16 on a semi-annual basis Driving Demand, with business partners and tenants, according to MGCCT’s distribution policy. 3 Based on opening IPO price of S$0.93 as of Driving Value Festival Walk also organised several 7 March 2013 and ending unit price of S$0.955 To drive demand to our three first-of-its-kind marketing events, such as of 31 March 2016. 4 Valuation on each property was carried out assets, our proactive asset as the Disney Tsum Tsum Festival by Cushman & Wakefield Valuation Advisory management strategy focuses exhibition and Pink Panther Poolside Services (HK) Ltd as of 31 March 2015 and by Colliers International (Hong Kong) Limited on implementing effective leasing Party, which were highly popular with as of 31 March 2016. 5 NAV per unit as of 31 March 2016, after payment strategies, offering a vibrant tenant our shoppers. of distributions to Unitholders on 27 May 2016, mix and continually improving the will be S$1.201. 6 During the year, one of the largest tenants of properties. With strong support Gateway Plaza the portfolio, by GRI, has committed a further from shoppers and tenants, five-year term and extended its lease from – Supported by Limited FY17/18 to FY22/23. MGCCT’s portfolio occupancy Supply in Beijing 7 Festival Walk was voted the ‘Top 10 My Favourite Mall’ and the ‘Most Trendy Shopping Mall’ at the rate was 98.6% and the portfolio’s In FY15/16, Gateway Plaza continued Apple Daily Best Mall Awards in February 2016 weighted average lease expiry to contribute to the portfolio’s returns, for the second consecutive year. 8 The cinema has been undergoing renovations by monthly gross rental income with year-on-year gross revenue since early 2016 and is expected to re-open (“GRI”) was a healthy 2.66 years and NPI growing 10.2% and 9.8% under a new operator in June 2016. 9 There was no office lease expiry at Festival Walk as of 31 March 2016. respectively. This was despite in FY15/16. 6 Mapletree Greater China Commercial Trust

Letter to unitholders

Sandhill Plaza’s accretive acquisition expands MGCCT’s presence in China.

moderate economic growth and new Sandhill Plaza locations. In FY15/16, the property office supply becoming available in – Rising Demand from the generated S$17.8 million in gross the Lufthansa area. Office leases Decentralisation Trend revenue and S$16.5 million in NPI. that expired in FY15/16 were signed In line with our strategy to pursue at an average effective rental uplift investment opportunities that will PRUDENT CAPITAL AND of 25% over preceding rental rates. enhance current and future returns RISK MANAGEMENT Occupancy rate at the office building to Unitholders, we completed the Over the year, MGCCT diversified was maintained at 96.8% as of acquisition of Sandhill Plaza at a funding sources by tapping the bond 31 March 2016, reflecting stable consideration of S$413.0 million2 market, extending and upsizing existing growth in demand for office spaces on 17 June 2015. facilities as well as entering into new that contributed to Beijing’s low vacancy rate1 of 3.6%. A premium business park property in Zhangjiang Hi-tech Park (designated To maintain and enhance Gateway as a Free Trade Zone in Shanghai), 1 Savills World Research, Beijing Office Sector Plaza’s prime positioning, we Sandhill Plaza comprises one 20-storey (January 2016). 2 completed asset enhancement 3 Based on exchange rate: S$1 = RMB4.57. tower and seven blocks of three-storey 3 Note that there are eight blocks of low-rise (3-storey) works in the year, where approximately buildings. The property has attained full buildings within the subject premises. However, one block 4 is separately owned by a third party, and does not form 800 square metres of unutilised occupancy since 30 September 2015, part of the acquisition. space at the three-storey podium reflecting strong demand for business 4 Sandhill Plaza’s committed occupancy rate was 96.2% as of 31 March 2015 as disclosed in the Acquisition was converted into F&B space. park spaces within decentralised announcement on 15 June 2015. Annual Report 2015/2016 7 OVERVIEW 31 March 2016. In accordance with our To underpin our future growth, we will proactive capital management strategy, we will continue to actively monitor and continue to actively enhance our assets and take necessary actions to manage these keep costs under control. We will remain exposures so as to deliver stable returns disciplined in our investment selection to Unitholders. STRATEGY criteria to seek accretive acquisitions with ACKNOWLEDGEMENTS potential for long-term growth. On behalf of the Board and the Manager, we would like to thank our non-executive and independent director Mrs Ow Foong

Pheng, who stepped down with effect PERFORMANCE facilities. The proceeds were utilised to China’s GDP growth continues to from 20 April 2016, for her invaluable fund the acquisition of Sandhill Plaza, be moderate and sustainable. In counsel and contribution. refinance the existing debt that expired Beijing, the city-wide vacancy rate3 in March 2016, and partially refinance remained low at 3.6%, but is expected We would like to express our deepest debt due in March 2017. Through these to increase slightly as a result of appreciation to the Board of Directors transactions, the weighted average new office supply. Demand for for their guidance as well as to

debt maturity was extended from office space in Beijing is expected to Unitholders, tenants, shoppers and GOVERNANCE & Su 2.75 years as of 31 March 2015 to continue to be driven by domestic business partners for their continued 3.01 years as of 31 March 2016. corporates that are largely from the trust and valuable support. We would financial services, technology, media also like to extend our gratitude to As of 31 March 2016, MGCCT has and telecommunication sectors. In our staff for their contributions and total borrowings of HK$13,733.1 million, Shanghai4, the government’s plans dedication to achieve yet another translating to a gearing of 39.5%. At an to further develop the Shanghai Free year of strong performance and average all-in cost of debt of 2.83%, Trade Zones (such as the Zhangjiang good results. stainabi the interest coverage ratio remains Hi-tech Park where Sandhill Plaza is healthy at 3.9 times with 100% of located) into a national-level innovation As we embark on our fourth year, we

MGCCT’s borrowings uncollateralised. hub attracting companies in the will continue to remain disciplined and l ity science and technology sectors, steadfast in driving growth for our MAKING AN IMPACT are expected to drive an increase portfolio and providing sustainable ON SUSTAINABILITY in demand for business park value to Unitholders. We believe that the success of our properties in Shanghai. FINANCIA company is ultimately driven by our firm commitment to act responsibly towards To underpin our future growth, we our environment, our people and the L

will continue to actively enhance the S & O communities in which we operate. attractiveness and positioning of our

This is MGCCT’s third annual report assets and keep costs under control. MR FRANK WONG KWONG SHING thers since listing, with continued disclosure We will remain disciplined in our Chairman and Independent of our performance with respect to investment selection criteria to seek Non-Executive Director environmental and social causes, as accretive acquisitions with potential well as corporate governance. With for long-term growth. the acquisition of Sandhill Plaza in June 2015, we have expanded our Given the weak global growth disclosure to include the performance environment, there remains uncertainty MS CINDY CHOW PEI PEI metrics of the new asset. in the capital markets and we expect Executive Director and continued volatility in interest rates Chief Executive Officer OUTLOOK and foreign exchange rates in the near Hong Kong’s economy1 is projected term. As of 31 March 2016, interest to grow by 1% to 2% in 2016. Despite cost on 77% of MGCCT’s debt was the headwinds affecting the overall fixed, limiting the impact of increases retail market, shopping malls2 and in interest rates on DPU. To reduce 1 The Government of the Hong Kong Special Administrative stores that offer mass-market and exposure to the Hong Kong Dollar and Region, “2015 Economic Background and 2016 Prospects”, 24 February 2016. affordable brands, such as Festival Renminbi volatility, more than 70% of 2 Colliers International, Hong Kong Retail (4Q 2015). Walk, are expected to remain relatively the anticipated distributable income for 3 Savills World Research, Beijing Office Sector resilient and well-supported by 5 (January 2016). 1H FY16/17 from the three properties 4 Colliers International, Shanghai Business Park (4Q 2015). domestic shoppers. has been hedged into SGD as of 5 For the period from 1 April to 30 September 2016. 8 Mapletree Greater China Commercial Trust 致单位信托 持有人之信函

尊敬的单位信托持有人 从上市到2016年3月 底 ，根 据 0.93新元 fresh，GEOX，Nespresso，Nike Basketball 的上市价，我们累计取得每单位可派发 和 Zara Home 等品牌店进驻又一城。 我们在此谨代表丰树大中华商业信托 收入20.112分4，回 报 率 为 21.6%； 新加入的餐饮品牌“安南”高级越南菜餐 管理有限公司董事会，向单位信托持 加上期间2.7%5的单位价格上涨， 厅和“千両”日本餐在香港的旗舰店为消费 有人提交MGCCT 1 2015年4月1日至 总回报率高达24.3%。 者 在 这 商 场 提 供 了 更 多 选 择 。又一 城 还 与 2016年3月31日财政年度(“15/16财政 业 务 伙 伴 和 租 户 通 力 合 作 ，首 创 了 不 少 年度”)之年度报告。 收购展想广场和租金收入的提升， 独一无二的市场营销活动，如迪斯尼 也使资产组合的估值6从2015年3月底 TSUM TSUM展览和粉红豹池畔派对 15/16财政年度是充满挑战的一年， 的53.49亿新元上升至2016年3月底的 等深受消费者欢迎的活动。 我们经营的市场也未能幸免。在香 59.22亿 新 元 ，增 幅 达 10.7% ；每 单 位 港 ，零 售 业 总 销 售 额 比 14/15财政年 净资产值亦相应从1.198新元增至 佳程广场 受助于北京市场的 度下降了6.4%2。持 续 下 跌 的 入 境 旅 1.239新元7。 有限供应量 游人数，不明朗的经济前景和市场波 在15/16财 政 年 度 ，佳 程 广 场 一 如 既 往 地 动 都 影 响 了 香 港 消 费 意 欲 。而 中 国 的 推动需求，提升价值 为资产组合的回报作贡献, 尽管中国经济 国民生产总值(GDP)增长也创下25年 为了推动对旗下三个资产的需求，我们 增长放缓及燕莎商业区也有新的办公楼 来 的 新 低 ，在 2015年仅有6.9% 。随 着 的资产管理方针侧重于实施有效的租 供 应 ，佳 程 广 场 全 年 总 营 收 和 净 房 地 产 中国这个世界第二大经济体的经济转 赁 策 略 ，提 供 一 个 有 活 力 的 租 户 组 合 ， 收入仍分别比去年同期增长10.2%和 型，中国在大力发展服务业和刺激国 并持续改进我们的物业。在消费者和 9.8%。15/16财政年度佳程广场到期的 内 消 费 的 同 时 ，也 减 少 了 对 制 造 业 和 租 户 的 大 力 支 持 下 ，截 至 2016年3月 办公楼租约签署的新租金比之前租金平 基础设施投资的依赖。 31日，MGCCT的资产组合出租率高达 均增长了25% 。截 至 2016年3月31日 ，办 98.6%，该资产组合的加权平均租期 公楼租用率保持在96.8% 。这 也 显 示 办 增 强 实 力 ，塑 造 增 长 按月总租金收入(“GRI”)计算为2.6年8， 公楼的需求还在稳步上升，令北京办公楼 MGCCT在充满挑战的市场环境中 处于健康理想水平。 的空置率12 低达3.6%。 寻求发展以及致力增强实力的同时， 也确保资产的稳定性。我们进行了 又一城 消 费 者 最喜爱 商场 9 1 Mapletree Greater China Commercial Trust 审 慎 的 资 本 和 风 险 管 理 ，并 把 握 契 在15/16财 政 年 度 ，尽 管 零 售 市 场 面 临 (MGCCT). 2 机塑造未来的增长。在过去的一年 越来越大的挑战，而又一城的电影院10 数据来自香港政府统计处公布的的零售业销货额 按月统计调查报告(2015年3月和2016年3月)。 里，MGCCT通过对两个现有物业积 也正在进行装修工程，导致租户销售额 3 按2015年4月1日至2016年3月31日期间的可派发 和客流量分别比去年同期下降了5.3% 收入1.999亿新元除以截至2016年3月31日所发行 极 的 资 产 管 理 ，实 现 了 强 劲 的 内 生 增 的2,757,579,017单位计算。 长 ；我 们 并 在 2015年6月通过首次收 和3.3% ，又 一 城 的 全 年 总 营 收 和 净 房 4 含MGCCT13/14财政年度至15/16财政年度每半 年一次的派发收入共6次。 地产收入依然比上一财政年度分别增长 购上海展想广场，而踏足上海市场。 5 根据2013年3月7日0.93新元的上市价和截至 14.6%和15.5% 。截 至 2016年3月31日， 2016年3月31日0.955新元的闭市价格计算。 6 由高纬环球评值及专业顾问(香港)有限公司于 通过这些努力，MGCCT自2013年 又一城的零售与办公楼的出租率持续 2015年3月31日 进 行 物 业 估 值 ；由 高 力 国 际 ( 香 港 ) 3月7日 上 市 以 来 连 创 三 年 佳 绩 ，与 上 保持在100%，15/16财政年度零售租赁11 有限公司于2016年3月31日进行物业估值。 7 在2016年5月27日派发收入后，预计截至2016年 个 财 政 年 度 相 比 ，资 产 组 合 总 营 收 达 租金平均比之前的租金增长了37%。 3月31日的每单位净资产值为1.201新元。 3.366亿 新 元 ，上 升 19.7% ；净 房 地 8 期 间 ，按 GRI计算，我们资产组合其中最大的租户 又续租了5年 ，将 租 约 到 期 日 从 17/18财政年度后 产收入(NPI) 达2.775亿 新 元 ，上 升 又一城商场的稳定业绩很大程度上归功 延至22/23财政年度。 9 21.0%。15/16财政年度的可派发收入 于其九龙塘地铁站上盖这一地利优势， 又一城在 2016年2月苹果日报最佳动Mall王大奖， 当选“十大我最喜爱动Mall王大奖”和“最时尚购物 达到1.999亿新元，与去年同期相比 覆盖地区之当地顾客群消费力强劲和 动Mall王大奖”。这是 又一城 继去年之 后又一次获 得该殊荣。 0 218 12 3 2016 聚焦中端及大众化市场品牌。 增加了 . 亿新元( . % ) 。按 10 电影院从2016年初开始装修，预计同年6月新院 年3月31日0.955新 元 的 闭 市 价 格 ，每 线投入运营。 11 15/16财政年度又一城没有办公楼的租约到期。 单位可派发收入(DPU)为7.248分3， 跨国商家继续将又一城作为他们的首选 12 第一太平戴维斯的北京办公楼研究报告 派息率达7.6%。 商场。15/16财年，kate spade new york， (2016年1月)。 Annual Report 2015/2016 9 OVERVIEW

为了保持并加强佳程广场的优质定位， 的 业 绩 。随 着 2015年6月展想广场的收 致谢 我们于本财政年度完成了资产增值工 购，我们的可持续发展相关数据指标亦 我们谨代表董事会和经理人，衷心感谢 程 ，将 三 层 楼 高 的 中 庭 近 800平方米的 涵盖 这项新 资产。 于2016年4月20日卸任的非执行董事和 空间改建为餐饮区。

独立董事吴凤萍女士，感谢她宝贵的建 STRATEGY 前景展望 议和贡献。 展想广场 去中心化趋势令需求增加 香港的经济4预计在2016年将增长1%至 秉持为单位信托持有人提升现有和 2% 。尽 管 有 影 响 整 体 零 售 市 场 的 不 利 我们谨此衷心的感谢董事会的指导及广 将来回报的策略，我们一直寻求新的 因素，提供主流及大众化市场品牌的商 大单位信托持有人、租户、消费者和业务 投 资 机 会 。在 2015年6月17日 ，我 们 出 资 店和商场5，如 又 一 城 ，预 计 将 依 然 保 持 伙伴始终不渝的信任和支持。我们也向 PERFORMANCE 4.13亿新元1收购了展想广场。 较稳定的表现，并受到国内消费者良好 全体员工致以由衷的谢意，正因为他们 的有力支持。 的付出和贡献，我们实现了又一年的 展想广场是位于张江高科技园区(被指 强劲佳绩。 定为上海自由贸易区)的一座优质商业园 中国的GDP增长仍会保持适度和持续 物 业 ，包 括 一 幢 20层高的塔楼和七幢 2 的增长。在北京，全市的办公楼空置率6 踏入MGCCT的 第 四 个 年 头 ，我 们 将 继 续 GOVERNANCE & Su 三 层 高 的 楼 房 。自 2015年9月30日 ，该 物 依旧维持在3.6% 的 低 水 平 ，但 随 着 新 建 恪守标准并坚定地致力推动我们资产组 业已达到满租 3。这 反 映 了 市 场 对 非 中 心 办公楼的增加，空置率预计将略升。北 合的增长，为单位信托持有人提供可持续 区商业园物业的强劲需求。在15/16财 京办公楼市场的需求预计将继续来自金 的价值。 政年度，该物业的总营收和净房地产收 融服务、科技、媒体和电信行业的国内 入分别为0.178亿新元和0.165亿新元。 企 业 。在 上 海 7，政 府 计 划 进 一 步 把 上 海 自由贸易区(如展想广场所在的张江高科 stainabi 审慎的资本和风险管理 技园区)发展为能吸引科技公司的国家 MGCCT 在过去的一年里， 进一步使融 级创新中心，这个计划预计将增加对上 黄钢城先生 l ity 资渠道多元化，在开发债券市场的同 海商业园物业的需求。 主席兼独立非执行董事 时，延长和加大现有银行信贷，并引进

新的信贷。这些款项被用于收购展想广 为了巩固我们未来的增长，我们将继续 FINANCIA 场 ，并 为 2016年3月到期的债务及部分 积极加强我们资产的吸引力和定位，并 2017年3月到期的债务进行再融资。 控制成本。我们将继续严格遵守我们的 L 通过这些交易，MGCCT的加权平均 投 资 选 择 标 准 ，寻 求 有 潜 力 的 长 期 增 值 周佩佩女士 S & O 债务期限从2015年3月31日的2.75年 项目。

执行董事兼总裁 thers 延长到2016年3月31日的3.01年。 鉴于全球经济增长疲软，资本市场 截至2016年3月31日，MGCCT共借贷 前景依然不明朗，我们预计短期内 137.331亿港币，负债比率为39.5%。 利率和汇率的波动会持续。截至 债务平均总利息成本维持在2.83%。 2016年3月31日，MGCCT已将77% 利息保障倍数保持在3.9倍的健康 的债务利息做成定息，以限制利率上升 1 基于汇率:1新元＝4.57人民币 100 DPU 水 平 ，其 资 产 %未用于抵押。 对 的影响。为了减少因港币和人民 2 实际上拥有八幢三层楼高的楼房，其中一幢 币 汇 率 波 动 产 生 的 风 险 ，我 们 已 将 16/17 属于第三方，不在收购的范围内。 3 8 在2015年6月15日 收 购 公 告 中 ，展 想 广 场 截 至 致力推行可持续发展 财政年度前半年 来自三项物业超过 2015年3月31日的租用率为96.2%。 我们坚信公司的成功源自于我们对环 70%的预期可派发收入对冲为新元。 4 该数据来自香港特别行政区政府于2016年2月 24日发表的“2015经济背景与2016展望报告”。 境、对人以及对业务所在的社区履行 按照积极的资本管理策略，我们将继续 5 高力国际，香港零售(4Q 2015) 企业责任的坚定承诺。这是MGCCT上 积极关注并采取必要的措施来管理相关 6 第一太平戴维斯世界研究，北京办公楼市场 (2016年1月) 市 以 来 的 第 三 份 年 度 报 告 ，会 继 续 公 开 的风险，从而为单位信托持有人提供 7 高力国际，上海商业园(4Q 2015)。 我们在环境、社会责任和企业管治方面 稳定的回报。 8 从2016年4月1日到9月30日。 10 Mapletree Greater China Commercial Trust Year In Brief FY15/16 May June Festival Walk received the MGCCT completed its maiden acquisition of ‘Outstanding Managed Public Sandhill Plaza, a business park property located Car Park’ award for the sixth in Zhangjiang Hi-tech Park, Pudong, Shanghai. 2015 consecutive year and the ‘Double Star Managed Festival Walk was presented with the Property’ awards for both its ‘Indoor Air Quality Certificate (Good Class)’ mall and office tower. for the mall for the fifth consecutive year.

July MGCCT’s Available DPU of 1.696 Singapore cents for MGCCT held its 2nd Annual General Meeting on 1Q FY15/16 was 8.7% higher than 1Q FY14/15. 30 July 2015, with all resolutions duly passed by Unitholders.

MGCCT won ‘Best Annual Report (Silver)’ for its inaugural annual report at the Singapore Corporate Awards 2015.

August September Festival Walk was the only three-time Festival Walk was voted ‘My Favourite Greater China Brand’ winner of the ‘Yahoo! Emotive Brand Award’ in the shopping mall category by China Travel Service in the shopping centre category. (Hong Kong) Limited.

Festival Walk garnered three accolades at the Marketing Events Awards: ‘Best Stunt (Gold)’, ‘Best Digital Integration (Gold)’, and ‘Best Exhibition Event (Silver)’. Annual Report 2015/2016 11

October OVERVIEW MGCCT delivered Available Festival Walk clinched the DPU of 1.808 Singapore ‘Marketing Excellence in cents for 2Q FY15/16, Emerging Digital Technology (Silver)’ award at the Asia Pacific a year-on-year increase STRATEGY of 12.6%. Shopping Center Awards by the International Council of Shopping Centers. PERFORMANCE

November January GOVERNANCE & Su Mapletree Greater China Commercial Treasury MGCCT achieved Company (HKSAR) Limited1 (“MGCCT HK-TCo”) Available DPU of 1.854 issued S$100 million 7-year 3.96% Fixed Rate Singapore cents for Notes due 2022. 2016 3Q FY15/16, 11.6% higher year-on-year. stainabi Ms Sandra Cheng, Festival Walk’s General Manager, receiving the mall’s ‘Brilliance in Festival Related

Event’ award at the Experiential Marketing Brilliance l ity Awards Hong Kong event by Metro Radio. The mall also won two other awards: ‘Top Ten Experiential Marketing Brilliance Awards’ and ‘Brilliance in February FINANCIA Integrated Digital Media Experience’. Festival Walk received the ‘Indoor Air Quality Certificate (Excellent Class)’ for the office building for the eighth

consecutive year. L S & O

Festival Walk was voted the ‘Top 10 My Favourite Mall’ thers and the ‘Most Trendy Shopping Mall’ at the Apple Daily Best Mall Awards for the second consecutive year.

March April MGCCT HK-TCo issued MGCCT’s Available S$120 million 7-year 3.50% DPU of 1.923 Festival Walk was presented with a Gold for Fixed Rate Notes due 2023. Singapore cents ‘Excellence in Use of Apps’ and a Bronze for for 4Q FY15/16 ‘Excellence in Mass Event’ at the Marketing Festival Walk was awarded was 10.4% higher Excellence Awards. the ‘Caring Company year-on-year. Certificate’ for the fourth consecutive year. 1 A wholly-owned subsidiary of MGCCT. 12 Mapletree Greater China Commercial Trust Strategy

Vision Mission To deliver regular and stable returns to Unitholders To be a leading and to achieve long-term sustainable growth in DPU and Net Asset Value (“NAV”) per unit Greater China-focused To be the landlord of choice for our tenants and commercial REIT by be committed to the delivery of quality products and services portfolio size, quality To acquire high-quality assets that are of assets and returns yield accretive

Key Strategies Active Active Asset Asset Management Enhancement Strategic Objectives Strategic Objectives Achieve growth in revenue and NPI Increase property value through asset Maintain optimal occupancy levels enhancement initiatives (AEI) to support and Drive organic growth enhance organic growth Build strong relationships with tenants Convert under-utilised space into leasable space Leverage on Sponsor’s experience

Plans in Action Plans in Action Actively manage leases to achieve an optimal Offer better amenities and upgrade facilities to tenant mix and mall positioning attract and retain tenants Introduce first-of-its kind retail concepts and align Optimise or increase leasable area to enhance tenant mix with current market trends rental revenue potential Implement innovative marketing concepts to improve Enhance the quality of assets through a regular shopper traffic and consumption for retail assets preventive maintenance schedule Improve operational efficiency and reduce Incorporate energy-efficient and environmentally- operating costs without compromising safety friendly technologies and/or initiatives where and quality feasible to enhance the sustainability of assets Manage and monitor rental arrears to minimise bad debts

Refer to: Refer to: p40-43 Operations Review, p97-144 Financial Statements p40-43 Operations Review, p86-96 Sustainability Report

Festival Walk’s focus on mid-tier and affordable brands attracts The lobby at Gateway Plaza, after the completion of asset locals and tourists. enhancement works. Annual Report 2015/2016 13

Investment Mandate To invest in a diversified portfolio of income-producing real estate in the Greater China region For commercial purposes (including real estate used predominantly for retail and/or office purposes),

as well as real estate-related assets OVERVIEW Key markets include: − Hong Kong and first-tier cities in China (Beijing, Shanghai, Guangzhou and Shenzhen) − Major urban centres along Beijing-Tianjin corridor, Shanghai-Suzhou-Hangzhou-Nanjing corridor and the Pearl River Delta (including Guangzhou, Shenzhen and Foshan) − Main growth centres and beneficiaries of the “go-west” policies (Chengdu, Chongqing, Wuhan and Xi’an) S TRATEGY PERFORMANCE Value-creating Proactive & Prudent Acquisition Capital and Risk Growth Management Strategic Objectives Strategic Objectives

Acquire good quality income-producing Maintain a strong balance sheet and credit rating GOVERNANCE & Su commercial properties that are aligned with our Ensure sufficient liquidity for working capital and investment strategy acquisition needs Enhance sustainable returns to Unitholders Mitigate exposure to interest rate and foreign exchange volatility Implement risk management strategies

Plans in Action Plans in Action stainabi On the ground investment team focused on Actively monitor, manage and balance cost of acquisitions that meet the following criteria: debt and duration

− Yield and DPU accretion Diversify sources of funding in debt and equity l − Location of asset capital markets and maintain a well-distributed ity − Asset enhancement potential debt maturity profile to minimise refinancing risk − Building and facilities specification Proactively monitor and undertake hedging FINANCIA − Tenant mix and occupancy characteristics strategies to minimise interest rate and currency risks Leverage on the Sponsor’s experience in the Greater China region and the Sponsor’s right of Regularly review risk management policies,

processes and system of controls and L

first refusal offered to MGCCT S & O monitor key risks

Refer to: thers Refer to: p35-39 Financial Review, p69-71 Risk Management, p40-43 Operations Review p97-144 Financial Statements

Sandhill Plaza is home to many local conglomerates and MNCs. Festival Walk: Tenants gathering at an external assembly area during a fire drill. Gateway Plaza 佳程广场 Annual Report 2015/2016 15

Nurturing Value OVERVIEW MGCCT is committed to nurturing its assets to uphold S

their best-in-class status through TRATEGY proactive asset management and asset enhancement initiatives.

This reinforces the resilience PERFORMANCE of our portfolio, giving us the flexibility to grow the Trust and create value for Unitholders. GOVERNANCE & Su jiā (Pinyin) denotes “good or beautiful” stainabi l ity FINANCIA L S & O thers

S$336.6 m S$277.5 m 7. 248 cents FY15/16 FY15/16 FY15/16 Gross nPI DPU 1 Revenue

1 Available DPU is calculated based on income available for distribution for the year over the number of issued units as of 31 March 2016. 16 Mapletree Greater China Commercial Trust

shèn (Pinyin) denotes “cautious” maintaining stability MGCCT has been delivering a steady and robust performance even in times of moderate economic growth. This validates our proactive capital and risk management approach, which is key to maintaining financial stability and ensuring sustainable returns.

3.01 years 77.0 % 2.83 % Average Term % of Debt Fixed1 Average All-in to Maturity (as of 31 March 2016) Cost of Debt for Debt (as of 31 March 2016) (as of 31 March 2016)

1 Interest cost on 77.0% of the total debt was fixed. OVERVIEW S TRATEGY PERFORMANCE GOVERNANCE & Su stainabi l ity FINANCIA L S & O thers

Festival Walk 又一城 Sandhill Plaza 展想广场 Annual Report 2015/2016 19 OVERVIEW S TRATEGY PERFORMANCE

zhăn GOVERNANCE & Su (Pinyin) denotes “expansion”

Driving stainabi l Growth ity

The strong organic growth of FINANCIA Festival Walk and Gateway Plaza,

coupled with the additional L income contribution from S & O Sandhill Plaza, demonstrates thers MGCCT’s focus and ability to drive consistent portfolio growth.

Festival Walk Gateway Plaza Sandhill Plaza 98.6 % +37.0 % +25.0% +33.0% Portfolio Rental uplift occupancy (FY15/16) (as of 31 March 2016) 20 Mapletree Greater China Commercial Trust

xù (Pinyin) denotes “continuity”

pursuing Sustainability Guided by the Sponsor’s corporate social responsibility framework, the ‘Shaping & Sharing’ Programme, MGCCT seeks to manage and grow our businesses sustainably, empower individuals and enrich the communities that we operate in.

3.6% 3.0% 2,160 tonnes Energy 1 Water 1 waste 1 consumption consumption Recycled y-o-y saved y-o-y saved y-o-y

1 Applies to both Festival Walk and Gateway Plaza in FY15/16 only. OVERVIEW S TRATEGY PERFORMANCE GOVERNANCE & Su stainabi l ity FINANCIA L S & O thers

Sandhill Plaza 展想广场 Property Portfolio

Property Portfolio Summary1

Gross Revenue Net Property Income FY15/16 FY15/16 Gross Floor Area 3 S$336.6 m S$277.5 m 3,256,667 sq ft Lettable Area Occupancy Top 2 2,625,438 sq ft Rate Tenants Office : 1,621,114 sq ft Retail : 1,004,324 sq ft Apple, Arup, Bank of China, BMW, China Fortune Land Market Valuation 98.6% Development (CFLD), As of 31 March 20164 Cummins, H&M, I.T, Spreadtrum, TaSTe S$5,922 m Annual Report 2015/2016 23

Festival Walk Hong Kong, 又一城 Festival Walk is a premier Beijing and one-stop shopping, dining and lifestyle destination that offers more than Shanghai 200 local and international brands as well as more than 30 food outlets OVERVIEW Retail and Office over seven retail levels. Situated in the upscale residential area of Kowloon MGCCT’s portfolio Tong, Festival Walk is directly linked comprises three prime to the Kowloon Tong MTR station and commercial properties enjoys excellent connectivity between located in Hong Kong, the underground Kwun Tong Line and STRATEGY the overland East Rail Line which links Hong Kong directly to the Shenzhen border. Beijing and Shanghai, Adjacent to two universities and neighbouring schools, the mall is also accessible covering a net lettable area by bus and road networks. The mall is well-supported by commuters passing of 2.6 million square feet. through the busy transport node as well as a catchment area with a population All three assets enjoy of more than 1.4 million. Key tenants at the mall include the Apple store, H&M, PERFORMAN excellent connectivity with LOG-ON, Marks & Spencer, Page One bookstore, TaSTe supermarket, Uniqlo and Zara Home. The mall also features a large multiplex cinema1, “FoodFest” food court convenient access to major and one of Hong Kong’s largest ice rinks, the “Glacier”. Festival Walk also has a roads, expressways and four-storey office block with tenants such as Arup and Prudential.

subway lines. With high C quality tenants operating Gateway Plaza E across diversified trade 佳程广场 sectors contributing to the Strategically located in the well- GOVERNANCE & Su established “Lufthansa” commercial portfolio’s steady rental hub within the Third Ring Road in growth, the three properties Beijing, Gateway Plaza is a Grade-A are expected to deliver office building which is home to stable DPU growth. a diverse group of well-known multinationals and local companies including BASF, BMW, CFLD, and stainabi Cummins. It occupies a vantage position, well-linked by major train,

bus and road networks and next to l ity the Airport Expressway with direct access to the Beijing Capital International Airport. Amenities provided at the podium area of the building include Bank of China, Nanyang Commercial Bank, a medical clinic and a selection of food & FINANCIA beverage (“F&B”) outlets including Starbucks and a Western café.

Sandhill Plaza L

展想广场 S & O Acquired in June 2015, Sandhill

Plaza is one of the newest premium thers quality business park developments Weighted Average in the mature area of Zhangjiang Lease Expiry (WALE) Hi-tech Park, designated as a Free by Monthly Gross Trade Zone in Shanghai. Located 5 between the Middle Ring and Outer Rental Income (GRI) Ring Expressways of Shanghai, it is within a 30-minute drive to Pudong 2.6 years International Airport, Lujiazui Central Business District and People’s Square in Puxi as well as within a 5-minute walk to Metro Line 2 Guanglan Road Station.

1 All portfolio information and numbers presented The tenants come from diverse sectors and include Analog Devices, Axalta, in this section are as of 31 March 2016 unless Borouge, Disney, Spreadtrum, Univar and Wincor Nixdorf. Sandhill Plaza offers a otherwise specified. The footnotes below also apply to this section. range of amenities including a staff canteen, F&B outlets and a convenience store. 2 Top 10 tenants by gross rental income for the month of March 2016. 3 sq ft (square feet). 4 Based on valuation on each property carried out by Colliers International (Hong Kong) Limited as of 31 March 2016. 1 The cinema has been undergoing renovations since early 2016 and is expected to re-open under a new 5 Based on committed leases. operator in June 2016. Property Portfolio

Festival Walk Hong Kong

Gross Revenue Net Property Income 80 Gross Floor Area FY15/16 FY15/16 Tat Chee 1,208,754 sq ft Avenue, Office : 228,665 sq ft S$236.5 m S$187. 2 m Kowloon Tong, Retail : 980,089 sq ft Hong Kong Lettable Area Market Valuation Top Comprises a 798,372 sq ft Local Currency/S$ four-storey office tower Tenants atop a seven-storey Office : 213,982 sq ft Retail : 584,390 sq ft HK$23,930m Retail territorial retail mall and (S$4,253 million) Apple Store, H&M, three underground HSBC and Premier Centre, car park levels WALE by Monthly GRI I.T, LOG-ON, Overall: 2.3 years Occupancy Rate Marks & Spencer, Office : 1.8 years As of 31 March 2016: TaSTe, UNIQLO Retail : 2.4 years Office 100.0% Arup, Prudential As of 31 March 2015: 100% Annual Report 2015/2016 25

Festival Walk’s Lease Expiry Profile by Monthly GRI Demonstrates As of 31 March 2016 Percentage Consistently (%) 30 29.5 Strong 26.0 25.1 24

Performance 18 OVERVIEW in FY15/16 12

6 4.7 4.8 5.4 Festival Walk, positioned 2.0 1.7 0.8 as a shopping, dining and 0 FY16/17 F Y17/18 FY18/19 FY19/20 FY20/21 STRATEGY lifestyle destination in and beyond Kowloon Tong, Hong Kong, No. of leases 111 75 63 7 10 continued to demonstrate Lease Expiry by % of GRI for Office Lease Expiry by % of GRI for Retail consistently strong Note: The lease expiry profile is based on existing leases.

performance in FY15/16, PERFORMAN Festival Walk’s Tenant Mix by GRI with gross revenue and As of 31 March 2016 NPI increasing by 14.6% and 15.5% respectively. Its % Apparel & Fashion Accessories 34.6 strategic location, excellent C Food & Beverages 15.5 E connectivity and diverse Personal Cosmetics 8.6 range of retail options Leisure & Entertainment 7.7 GOVERNANCE & Su and amenities drew more Departmental Store & Supermarket 7.6 than 40 million shoppers, Houseware, Electronics & Furnishings 7.0 with tenant sales reaching Services 6.9 Professional & Business Services 5.8 HK$5,321 million in the year Luxury Jewellery, Watches & Accessories 4.5 ended 31 March 2016. Financial Institution/Insurance/ Banking/Real Estate 1.8 stainabi l Retail Sales Footfall ity

(HK$ million) (Million)

6,000 5,619 50 5,321 41.7 40.4 FINANCIA 3,000 25

0 0

FY14/15 FY15/16 FY14/15 FY15/16 L S & O thers heung R g C d un Car Park Lots Dynasty L Heights Meridian 830 Hill Beacon Heights One Beacon Building Completion Hill Beacon November 1998 Hill Rd One Mayfair Cornwall St Festival Junction Rd Hong Kong Baptist Date of Purchase Waterloo Rd Tat Chee Ave Walk University City University 7 March 2013 of Hong Kong Somerset Rd Lok Fu Suffolk Rd Kowloon To Fuk Rd Government Lease Term/ Tong Land Use Right Expiry Norfolk Rd Sunderland York Rd Court 30 June 2047 To Yuen St Parc Hereford Rd Residential Oasis Village Garden University Number of Leases Nam Cheong St Tong Yam St Kwun Tong Line East Rail Line 266 Shek To Tsim Sha Tsui Kip Mei Fa Po St 26 Mapletree Greater China Commercial Trust

Property Portfolio

Festival Walk Hong Kong

Nike Basketball kate spade new york

J.Lindeberg

fresh

An Nam Restaurant “Ted 2” Novelty Concept Store Annual Report 2015/2016 27 OVERVIEW STRATEGY PERFORMAN C

Zara Home E GOVERNANCE & Su stainabi l ity FINANCIA L S & O Seed Heritage Nespresso New thers Concepts and Brands

Ferrari Store Junior sen-ryo 28 Mapletree Greater China Commercial Trust

Property Portfolio

Festival Walk Hong Kong

“Canon Wonderland” event promotion.

The grand Christmas opening by international celebrity Tang Wei.

Football game on skates at the Glacier. The popular car shows were staple events at the mall.

Hunter, a tenant at Festival Walk, promoting its colourful range of rainboots. Ushering in the new year at Festival Walk. Annual Report 2015/2016 29 OVERVIEW STRATEGY PERFORMAN C E

Many shoppers were attracted to the first-ever Disney Tsum Tsum promotion held in Hong Kong. GOVERNANCE & Su stainabi l ity FINANCIA L S & O thers Galore Make-up demonstrations by tenants of at the Pink Panther Poolside Party. Exciting Activities

“Sports Craze” event featuring an indoor rock Maiden exhibition of the life-size Batmobile in Hong Kong, at the climbing wall and the latest sportswear fashion. “Batman v Superman: Dawn of Justice” movie promotional event. Property Portfolio

Gateway Plaza Beijing

Gross Revenue Net Property Income 18 Xiaguangli, Gross Floor Area3 FY15/16 FY15/16 East 3rd Ring Road 106,456 sqm North, Lufthansa Office : 94,715 sqm S$82.3 m S$73.7m Area, Beijing Podium : 11,741 sqm A premier Grade-A office Lettable Area Market Valuation building, consisting of two Top 25-storey towers connected 106,456 sqm Local Currency/S$ Tenants by a three-storey podium area Office : 94,715 sqm and three underground floors Podium : 11,741 sqm RMB5,930m Office 1 (S$1,256 million) Anhui Yucheng , BMW, 2 CFLD , Changjiu Group, 1 Anhui Yucheng is no longer a tenant of WALE by Monthly GRI Cummins, Doosan, Gateway Plaza since 1 April 2016. 4 2 China Fortune Land Development (CFLD). Overall: 3.9 years Occupancy Rate John Deere, 3 Square metres (sqm) is the standard Office : 3.4 years As of 31 March 2016: SBC Business Service convention for area in China. 4 During the quarter, one of the largest Podium : 7.8 years Podium tenants of the portfolio (by gross rental % Bank of China, income) has committed a further five-year 96.8 term, which extended its lease from As of 31 March 2015: 98.0% Nanyang Commercial Bank FY17/18 to FY22/23. Annual Report 2015/2016 31

Gateway Plaza’s Lease Expiry Profile by Monthly GRI An Attractive As of 31 March 2016 Percentage Office Location (%) in Beijing 48 47.4 42

Gateway Plaza, with its 36 OVERVIEW proximity to hotels, shopping 30 arcades, international schools, 24 embassies and residences 23.1 in the Lufthansa area, is an 18 STRATEGY attractive office location 12 12.6 to multinationals and local 9.7 6 conglomerates. Tenants 4.3 0.8 1.3 0.7 continued to recognise 0 0.1 FY16/17 F Y17/18 FY18/19 FY19/20 FY20/21 and beyond the building’s high quality PERFORMAN specifications and well- No. of leases 28 27 17 3 10 managed property services, Lease Expiry by % of GRI for Office Lease Expiry by % of GRI for Podium leading to its high occupancy Note: The lease expiry profile is based on existing leases. level of 96.8% as of 31 March C E 2016. During FY15/16, the Gateway Plaza’s Tenant Mix by GRI building’s podium area was As of 31 March 2016 GOVERNANCE & Su improved following the completion of the asset % enhancement initiative Automobile 30.7 Financial Institution/Insurance/ which would feature more Banking/Real Estate 26.3 F&B outlets, better visibility Machinery/Equipment/Manufacturing 22.4 and accessibility. Professional & Business Services 8.7 stainabi Natural Resources 4.1 Services 3.1 Leisure & Entertainment 2.0 l Pharmaceutical/Medical 1.6 ity Others 0.7 Food & Beverages 0.4 FINANCIA L S & O thers Sanyuanqiao Car Park Lots Shopping Centre 3rd Ring Rd 692 Hotel Embassy To Beijing Airport

Subway Line 10 Gateway Tianze Rd Building Completion Airport Express Plaza August 2005 Xiaoyun Rd

Airport Expressway Embassy of the Date of Purchase United States Embassy Embassy of of Japan Xiangheyuan Rd the Republic 7 March 2013 of Korea Embassy Xinyuan Rd Hilton of France Hotel Government Lease Term/ Land Use Right Expiry Shunyuan Rd Dongzhimen Outer Byway Westin Hotel Liangmaqiao RdFour Seasons Beijing Hotel 25 February 2053 Xindong Rd Liangmaqiao Kempinski Hotel Yansha Youyi Kunlun Hotel Shopping Centre Number of Leases Xinyuan S Rd 85 Landmark River To CBD Great Wall Sheraton Hotel Property Portfolio

Sandhill Plaza Shanghai

Gross Revenue Net Property Income 2290 Zuchongzhi Gross Floor Area FY15/16 FY15/16 Road, Zhangjiang 83,801 sqm Hi-tech Park, S$17.8 m S$16.5 m Pudong New Area, Lettable Area Shanghai 63,284 sqm Market Valuation A premium business park Office : 61,684 sqm Top Amenities : 1,600 sqm Local Currency/S$ Tenants development comprising one 20-storey tower, WALE by Monthly GRI RMB1,950 m seven blocks of 3-storey (S$413 million) Analog Devices, buildings1 and two basement Overall: 1.7 years Axalta, Borouge, levels of car park Broadcom, Han Ting, Office : 1.6 years Amenities : 3.8 years Occupancy Rate Hexagon, Shan Lin Finance, As of 31 March 2016: Spreadtrum, 1 There are eight blocks of low-rise (three-storey) buildings within the Wincor Nixdorf, subject premises, of which one block is % Xin Wei Lai separately owned by a third party and 100.0 does not form part of the acquisition. Annual Report 2015/2016 33

Sandhill Plaza’s Lease Expiry Profile by Monthly GRI Positive As of 31 March 2016 Percentage Contribution (%) to Both Gross 48 42 42.6

Revenue and 36 OVERVIEW

NPI in FY15/16 30 29.5

24 The newest addition to MGCCT, Sandhill Plaza was an 18 17.8 STRATEGY accretive acquisition that had 12 contributed positively to both 6 4.7 the portfolio gross revenue 2.1 2.5 0 0.4 0.4 and NPI in FY15/16. Since its FY16/17 F Y17/18 FY18/19 FY19/20 FY20/21 and beyond acquisition on 17 June 2015, PERFORMAN the Manager had focused on No. of leases 23 20 15 6 3 establishing and refining the Lease Expiry by % of GRI for Office Lease Expiry by % of GRI for Amenities processes and procedures Note: The lease expiry profile is based on existing leases. at Sandhill Plaza to ensure C E that the property operated Sandhill Plaza’s Tenant Mix by GRI efficiently and remained As of 31 March 2016 GOVERNANCE & Su well-maintained. As of end March 2016, Sandhill Plaza % had achieved full occupancy Machinery/Equipment/Manufacturing 57.0 and is expected to ride on the Information Technology 21.8 Financial Institution/Insurance/ growing decentralisation trend Banking/Real Estate 10.5 and benefit from the resulting Leisure & Entertainment 4.4 stainabi rise in demand for business Renewable Energy 1.9 park space in Shanghai. Automobile 1.3 Food & Beverages 1.2 l Pharmaceutical/Medical 1.2 ity Houseware, Electronics & Furnishings 0.5 Others 0.2 FINANCIA L S & O

In thers n e r Puxi R Shanghai Ring Expressway in Car Park Lots g gpu River E an x Hu p re Lujiazui s 460 s w a Longdong Ave y Shanghai New Sandhill Building Completion International December 2012 Expo Centre Plaza Guanglan

d Road Date of Acquisition R Longyang

h t Road u o

S 17 June 2015

o

a

g

g

n a Middle Ring Expressway Pudong

Government Lease Term/ Y International Shanghai Chuannanfeng Highway Airport Land Use Right Expiry Outer Ring Expressway Disneyland 3 February 2060 Hulu Expressway Shanghai Airport Pudong Subway Line 2 International Number of Leases Airport 67 Shanghai Maglev Train 34 Mapletree Greater China Commercial Trust Unit Price Performance

MGCCT Trading Performance since IPO1

Unit Price Volume Traded (S$) (million) 1.20 60

1.10 50

1.00 40

0.90 30

0.80 20

0.70 10

0.60 0 Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar 13 13 13 13 13 14 14 14 14 14 14 15 15 15 15 15 15 16 16 Volume Traded (million) MGCCT’s Unit Price (S$)

1 Excludes first three days of trading to remove IPO effect. Period is from 12 March 2013 to 31 March 2016.

During FY15/16, the global financial Better Trading Performance vs Major Indices in FY15/16 markets saw heightened volatility (31 March 2015 to 31 March 2016) as a result of widespread concerns Rebased opening prices over a slowdown in China’s economy, on 1 April 2015 = 100 a potential increase in interest rates and 130 a devaluation of the Chinese renminbi. 120 While MGCCT’s unit price closed at S$0.955 on 31 March 2016, 8.2% 110 MGCCT Unit Price -8.2% lower compared to the closing price 100 FTSE Straits Times of S$1.04 on 31 March 2015, it REIT Index -10.5% outperformed the Straits Times Index 90 Hang Seng Index (STI), FTSE Straits Times Real Estate -16.6% 80 Investment Trusts (FTSE ST REIT) Index FTSE Straits Times Index -17.6 % and Hang Seng Index (HSI) which 70 declined 17.6%, 10.5% and 16.6% Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar respectively compared to FY14/15. 15 15 15 15 15 15 15 15 15 15 16 16 16 Rebased MGCCT Unit Price Rebased FTSE Straits Times REIT Index Rebased Hang Seng Index Rebased FTSE Straits Times Index During the year, MGCCT’s closing unit price averaged S$0.964. The highest MGCCT Offers a Higher Return vs Other Comparable Instruments closing price was S$1.095 while the (as of 31 March 2016) lowest was S$0.810 and a total of

1,310.3 million units were traded, (%) translating to an average daily trading 8.0 7.6 volume of 5.0 million units. As of 6.3 31 March 2016, MGCCT’s unit price 6.0 has increased 2.7% from its listing price 4.0 4.1 of S$0.93 and its market capitalisation 2.5 2.0 1.8 has also increased from S$2.48 billion 1.3 at listing date to S$2.63 billion as of 0.4 0 31 March 2016. MGCCT FTSE Hang Seng CPF 10-year 10-year 12-month Yield1 ST REIT Index 3 Ordinary Singapore Hong Kong SGD Fixed Index 2 Account 4 Govt Bond Govt Bond Deposit 7 At an attractive distribution yield Yield 5 Yield 6 of 7.6% as of 31 March 2016, 1 Based on actual DPU of 7.248 cents for the period 1 April 2015 to 31 March 2016 and closing unit price MGCCT offers a higher return of $0.955 on 31 March 2016. than the FTSE ST REIT Index 2 12-month gross dividend yield of FTSE Straits Times (ST) REIT Index as of 31 March 2016, Bloomberg. 3 12-month gross dividend yield of Hang Seng Index as of 31 March 2016, Bloomberg. and HSI at yields of 6.3% and 4 Prevailing interest rate on Central Providend Fund (“CPF”) Ordinary Account Savings from CPF Board, Jan-Mar 2016. 4.1% respectively. 5 Singapore Government Bond Yield from Monetary Authority of Singapore, as of 31 March 2016. 6 Hong Kong Government Bond Yield from Hong Kong Government Bond Programme website, as of 31 March 2016. 7 12-month SGD fixed deposit savings rate from Monetary Authority of Singapore, as of 31 March 2016. Annual Report 2015/2016 35 Financial Review OVERVIEW GROSS REVENUE NET PROPERTY INCOME FINANCE COSTS (NET) AND MGCCT achieved gross revenue of The increase in gross revenue FOREIGN EXCHANGE GAIN S$336.6 million for the year from outpaced the rise in property operating Finance costs (net) for FY15/16 1 April 2015 to 31 March 2016 expenses resulting in a higher NPI rose 59.7% or S$24.1 million to (“FY15/16”), an increase of 19.7% of S$277.5 million, 21.0% higher than S$64.5 million. In accordance with

compared to the same period last FY14/15. Consequently, portfolio the Manager’s proactive capital STRATEGY year (“FY14/15”). The increase was NPI margin1 improved from 81.6% management strategy to extend debt contributed by high rental reversions in FY14/15 to 82.4% in FY15/16. maturity and reduce exposure to at Festival Walk and Gateway Plaza, interest rate volatility, expiring debt resulting from active asset management By percentage contribution to NPI, was refinanced with medium term by the Manager. The acquisition of Festival Walk, Gateway Plaza and notes and longer term debt, and Sandhill Plaza on 17 June 2015 as Sandhill Plaza accounted for 67%, interest rate swaps were undertaken PERFORMAN well as the appreciation of Hong Kong 27% and 6% respectively in FY15/16. to increase the fixed to floating debt Dollar (“HKD”) and Renminbi (“RMB”) ratio. These increased interest cost against Singapore Dollar (“SGD”) also MANAGEMENT FEES by S$5.0 million and S$5.9 million

added to the growth in gross revenue. Aligned to the interest of the respectively. In addition, MGCCT C By asset, Festival Walk, Gateway Plaza Unitholders, MGCCT’s base and increased borrowings to finance the E and Sandhill Plaza contributed 70%, performance fee structures are acquisition of Sandhill Plaza which

25% and 5% respectively to the portfolio based on distributable income gave rise to an additional interest cost GOVERNANCE & Su gross revenue in FY15/16. (or income available for distribution of S$9.7 million. The appreciation of to the Unitholders) and DPU HKD against SGD also added a further PROPERTY OPERATING EXPENSES growth respectively. S$3.1 million to interest cost. More Property operating expenses of information on the medium term S$59.2 million in FY15/16 was 14.2% Management fees2 of S$24.9 million in notes and debt is available in the higher than FY14/15. This was mainly FY15/16 comprises Manager’s base fee Capital Management section. due to the addition of Sandhill Plaza, of S$20.0 million, calculated as 10% stainabi higher maintenance costs at Festival of distributable income in FY15/16, Walk, higher property and lease and performance fee of S$4.9 million, management fees in line with the calculated as 25% of growth of FY15/16 l ity growth in revenue, as well as the DPU over FY14/15 DPU multiplied by 1 NPI Margin = NPI/gross revenue. appreciation of HKD and RMB the weighted average number of 2 Base fee and performance fee are paid in the form of Units. Base fee is paid quarterly in arrears while against SGD. Units in issue for FY15/16. performance fee is paid annually in arrears. FINANCIA L S & O Overview thers Variance % FY15/16 FY14/15 Positive/ (S$’000) (S$’000) (Negative)

Gross Revenue 336,638 281,144 19.7 Property Operating Expenses (59,172) (51,834) (14.2) Net Property Income 277,466 229,310 21.0 Management Fees (24,871) (22,012) (13.0) Finance Costs (Net) (64,451) (40,366) (59.7) Foreign Exchange Gain/(Loss) 32,340 (3,957) NM Trust Expenses (2,839) (3,054) 7.0 Total Trust Expenses (59,821) (69,389) 13.8 Net Change in Fair Value of Investment Properties 239,921 196,383 22.2 Net Change in Fair Value of Financial Derivatives 8,378 (3,086) NM Income Tax Expenses (37,843) (33,819) (11.9) Total Return for the Year 428,101 319,399 34.0 Distribution Adjustments (228,227) (141,360) (61.5) Income Available for Distribution to Unitholders 199,874 178,039 12.3

NM – Not Meaningful 36 Mapletree Greater China Commercial Trust

Financial Review

The exchange gain of S$32.3 million Net change in fair value of financial INCOME AVAILABLE FOR arising in FY15/16 was largely due to derivatives of S$8.4 million arises from DISTRIBUTION AND the settlement of an inter-company loan. the marking-to-market of currency DISTRIBUTION PER UNIT This foreign exchange gain is capital in forward contracts entered into to After taking into account the distribution nature and is therefore not distributable. hedge foreign currency risk exposures adjustments, income available for The gain is partially offset by realised for future HKD and RMB distributable distribution to Unitholders for FY15/16 exchange losses of S$4.3 million income arising from the assets. As was S$199.9 million, 12.3% higher arising from currency forward contracts these contracts are unrealised, it will not than FY14/15. This translates to a undertaken to hedge HKD and RMB have an impact on current year income DPU of 7.248 cents for FY15/16, income, consistent with the Manager’s available for distribution to Unitholders. a 10.8% increase compared to FY14/15. active hedging policy to reduce As the income streams for FY15/16 The Manager continues to pay out currency risk exposure and ensure are substantially hedged, the impact 100% of MGCCT’s income available consistency of distributions. of currency volatility on current year for distribution to Unitholders. distributions is mitigated. NET CHANGE IN FAIR VALUE OF UNITS IN ISSUE INVESTMENT PROPERTIES AND INCOME TAX EXPENSES During FY15/16, MGCCT issued NET CHANGE IN FAIR VALUE OF The increase in taxation of 11.9% for 36,546,223 new Units, in respect of FINANCIAL DERIVATIVES FY15/16 was mainly due to higher the payment of management fees Net change in fair value of investment current and withholding taxes arising to the Manager and the Property properties of S$239.9 million represents from higher total return before tax as well Manager in Units. As a result, the total the aggregate revaluation gains on as higher deferred tax expense arising number of Units in issue increased from investment properties based on the from revaluation gains. 2,721,032,794 as of 31 March 2015 to valuation of each property carried out 2,757,579,017 as of 31 March 2016. by Colliers International (Hong Kong) DISTRIBUTION ADJUSTMENTS Limited as of 31 March 2016, compared Distribution adjustments include the ACQUISITION to the carrying value of the respective Manager’s management fees and On 17 June 2015, MGCCT completed properties. Festival Walk, Gateway property management fees which are the acquisition of Sandhill Plaza in Plaza and Sandhill Plaza contributed payable in the form of Units, financing Pudong, Shanghai for a purchase S$172.6 million (2015: S$134.2 million), fees on borrowings, deferred tax in consideration of RMB1,888.2 million S$48.2 million (2015: S$62.2 million) relation to the claim in capital allowance (equivalent to S$413.0 million1), which and S$19.1 million (2015: not applicable) for Festival Walk, deferred tax on net comprised the property purchase of revaluation gains respectively. change in fair value of Gateway Plaza price of RMB1,840.3 million (equivalent Revaluation gains are unrealised and do and Sandhill Plaza, foreign exchange to S$402.5 million1) and the working not have an impact on income available gain on capital item as well as change for distribution to Unitholders in the fair value of investment properties in FY15/16. and financial derivatives. 1 Based on the exchange rate of S$1 = RMB4.57.

Gross Revenue by Asset Net Property Income by Asset

(S$ million) (S$ million) 280 14.6% 280

240 236.5 240 15.5% 206.4 200 200 187.2

160 160 162.1

120 10.2% 120 9.8%

80 82.3 80 74.7 67.2 73.7

40 40 17.8 16.5 0 0 FY14/15 FY15/16 FY14/15 FY15/16 FY14/15 FY15/16 FY14/15 FY15/16 FY14/15 FY15/16 FY14/15 FY15/16 Festival Walk Gateway Plaza Sandhill Plaza Festival Walk Gateway Plaza Sandhill Plaza Annual Report 2015/2016 37 OVERVIEW Semi-Annual Distributions(a) Distributable Income Number of for the Period Issued Units DPU(b) Period Payment Date S$’000 as at End Period cents

FY15/16 1 April to 30 September 2015 26 November 2015 95,879 2,739,815,998 3.499 1 October 2015 to 31 March 2016 27 May 2016 103,995 2,757,579,017 3.771 STRATEGY FY14/15 1 April to 30 September 2014 24 November 2014 85,547 2,705,865,469 3.162 1 October 2014 to 31 March 2015 25 May 2015 92,492 2,721,032,794 3.398

Units Issued in FY15/16 PERFORMAN Number Issued Price(c) Type of Fees For Period Issued Date of Units (S$)

Base & Property Management(d) Fees 1 January to 31 March 2015 26 May 2015 7,428,793 1.0352 Performance Fee 1 April 2014 to 31 March 2015 26 May 2015 4,064,847 1.0352 C Base & Property Management(d) Fees 1 April to 30 June 2015 24 August 2015 7, 28 9,56 4 1.0260 E Base & Property Management(d) Fees 1 July to 30 September 2015 26 November 2015 8,825,027 0.9210 (d) Base & Property Management Fees 1 October to 31 December 2015 24 February 2016 8,937,992 0.9124 GOVERNANCE & Su Total: 36,546,223

(a) MGCCT’s distribution policy is to distribute on a semi-annual basis. (b) The DPU is calculated based on the income available for distribution (“Distributable Income”) for the period over the number of issued units as at the end of the period. FY15/16 DPU for the period from 1 April 2015 to 31 March 2016 is 7.248 cents based on the distributable income of S$199.9 million over the total issued units of 2,757,579,017 as of 31 March 2016. (c) The issue prices were determined based on the volume weighted average traded price (“VWAP”) for all trades done on SGX-ST in the ordinary course of trading for the last 10 business days of the relevant quarter on which the fees accrued. (d) The Property Management Fees relate only to Festival Walk and Gateway Plaza. For Sandhill Plaza, the Manager has elected to pay the Property Management Fee in cash. stainabi capital adjustments1 attributable to the of investment properties of S$239.9 4 August 2015. This cash amount of entities being acquired. Sandhill Plaza million (refer to the “Net Change in Fair RMB213.4 million (equivalent to l ity was appraised by Cushman & Wakefield Value of Investment Properties” section), S$45.2 million) is due to be repaid Valuation Advisory Services (HK) Ltd, partially offset by a translation loss of to a related party, Mapletree India which is an independent valuer appointed S$86.9 million using year-end balance China Fund Ltd. There is a balance of by DBS Trustee Limited (in its capacity sheet rates. RMB51.5 million (equivalent to S$10.9 FINANCIA as trustee of MGCCT), and its valuation2 million) which continues to be held by of Sandhill Plaza as of 8 June 2015 was TOTAL ASSETS AND the PRC courts pending a damages

RMB1,902.0 million (or approximately claim against Beijing Bestride Real Estate L NET ASSET VALUE S & O S$415.3 million). The acquisition from an The total assets of MGCCT amounted Development Co. Ltd. arising from the

unrelated third party vendor, MSREF VII to S$6,153.5 million as of 31 March resolution of the Litigation Action. thers LEAPHART BV, was fully debt funded by 2016, 12.1% higher than a year ago. This existing available banking facilities, with was mainly attributed to the increase The total liabilities of MGCCT amounted a combination of both RMB3 and HKD in portfolio valuation as mentioned to S$2,737.3 million as of 31 March 2016, denominated debt facilities. The Manager earlier. There was also an increase in which was S$509.4 million higher than elected to be paid the Acquisition Fee cash balances of S$81.0 million due last year. The increase in total liabilities of RMB18.4 million (equivalent to to higher net cash generated from was mainly due to additional borrowings S$4.0 million4) in cash. operating activities offset by distributions of S$417.6 million for the acquisition of to Unitholders. Additionally, there was Sandhill Plaza and the amount payable VALUATION OF PROPERTIES a cash receipt of RMB213.4 million to Mapletree India China Fund Ltd. As of 31 March 2016, MGCCT’s (equivalent to S$45.2 million), which of S$45.2 million as explained earlier. properties were valued at S$5,922.5 million was released from People’s Republic In addition, there was an increase in by Colliers International (Hong Kong) of China (“PRC”) courts to a subsidiary 1 Computed as the net assets less liabilities of the group Limited, 10.7% or S$573.2 million higher company HK Gateway Plaza Company of entities being acquired. than the S$5,349.3 million valued as at Limited (“HKGW”) relating to the 2 The Valuer has estimated the open market value of Sandhill 5 Plaza using the direct comparison approach, capitalisation 31 March 2015. The increased portfolio resolution of the Litigation Action in the analysis, and discounted cash flow analysis. value was mainly due to the acquisition PRC courts between Beijing Bestride 3 The property had an existing RMB349 million debt facility as of 17 June 2015. of Sandhill Plaza which contributed Real Estate Development Co. Ltd. and 4 Based on exchange rate of S$1 = RMB4.57. S$407.2 million and recognition of HKGW in favour of HKGW, as disclosed 5 Details of the Litigation Action can be found on pages 53-55 and 237 of MGCCT’s IPO Prospectus aggregate revaluation gains on fair value in the SGXNet Announcement dated dated 27 February 2013. 38 Mapletree Greater China Commercial Trust

Financial Review

deferred tax liabilities of S$17.5 million rate and foreign exchange volatilities as as well as available committed bank mainly arising from the fair valuation gain well as diversifying sources of funding. facilities of HK$948 million which can be on investment properties, and higher utilised for future financial obligations. trade and other creditor balances of Following the first three note issuances S$10.6 million arising from the acquisition in FY14/15, Mapletree Greater China MGCCT ended the financial year with a of Sandhill Plaza. Commercial Treasury Company (HKSAR) gearing ratio of 39.5%, which is below Limited (“MGCCT HK-TCo”)3 took the regulatory limit of 45% under the As of 31 March 2016, MGCCT had net advantage of favourable market conditions revised Code of Collective Investment current liabilities of S$425.7 million which and successfully completed two note Schemes. The increase in gearing level was mainly due to borrowings maturing issuances4 in FY15/16, which were issued from 36.2% as of 31 March 2015 was in March 2017. As part of the Group’s under the US$1.5 billion Euro Medium mainly due to additional borrowings to refinancing strategy, these borrowings will Term Securities Programme (“MTN fund the acquisition of Sandhill Plaza. be refinanced with medium term notes or Programme”) established on 31 May 2013. As of 31 March 2016, MGCCT recorded bank debt prior to maturity. On 12 April During the year, MGCCT also extended a healthy interest coverage ratio of 2016, MGCCT announced the issuance and upsized existing revolving credit 3.9 times and achieved an average of a HK$600 million, 7-year bond which facilities and entered into a new five-year all-in cost of debt of 2.83%. was utilised to refinance part of the revolving credit facility as well as two new existing debt due in March 2017 and four-year and five-year term loan facilities. FINANCIAL RISK MANAGEMENT further extend MGCCT’s debt maturity. The proceeds raised from the notes and MGCCT operates across three cities debt issuances were utilised to fund the in Hong Kong and Greater China and Correspondingly, NAV per Unit increased acquisition of Sandhill Plaza (HK$2,395 is exposed to a variety of financial from S$1.198 as of 31 March 2015 to million), refinance the remaining debt of risks, including credit, liquidity and S$1.2391 as of 31 March 2016. HK$1,476 million expiring in March 2016, market (foreign currency and interest and partially refinance HK$1,632 million rate) risks. While carrying out financial The total operating expenses2 incurred of the debt due in March 2017. This has risk management in accordance with by MGCCT in FY15/16 amounted to extended MGCCT’s average debt maturity S$86.9 million (FY14/15: S$76.9 million), from 2.75 years as of 31 March 2015 to which was equivalent to 2.54% 3.01 years as of 31 March 2016. (2015: 2.36%) of NAV as of 31 March 2016. 1 NAV per Unit as of 31 March 2016, after payment of distributions to Unitholders on 27 May 2016, As of 31 March 2016, MGCCT’s borrowings will be S$1.201. 2 Operating expenses for the financial year comprised CAPITAL MANAGEMENT stood at HK$13,733 million, comprising property expenses, which include fees and charges paid/ MGCCT adopts a proactive capital bank debt of HK$10,913 million payable to interested persons, Manager’s management fees, trustee’s fee and other trust expenses. management strategy which aims to and HK$2,820 million of notes issued. 3 A wholly-owned subsidiary of MGCCT. provide financial stability and flexibility MGCCT has an untapped balance of 4 Comprises two bond issuances in FY15/16: S$100 million 7-year 3.96% Notes due 2022 in November 2015 and through mitigating exposure to interest US$1,143 million from its MTN Programme S$120 million 7-year 3.5% Notes due 2023 in March 2016.

Valuation of Properties Valuation as of Valuation as of Valuation as of Valuation as of Valuation Cap Purchase 7 March 2013 (a) 31 March 2014 (b) 31 March 2015 (c) 31 March 2016 (d) Rate (Gross) as of $ million Price (Local Currency/S$) (Local Currency/S$) (Local Currency/S$) (Local Currency/S$) 31 March 2016

Festival Walk HK$20,700 HK$20,700 HK$22,100 HK$22,930 HK$23,930 4.5% S$3,296 (e) S$3,296 S$3,609 S$4,078 S$4,253 (no change) Gateway Plaza RMB5,150 RMB5,165 RMB5,371 RMB5,675 RMB5,930 6.5% S$1,013 (e) S$1,016 S$1,113 S$1,271 S$1,256 (no change) Sandhill Plaza RMB1,862 - - - RMB1,950 5.75% (SP) S$407 (f) S$413 Portfolio S$4,312 S$4,722 S$5,349 S$5,922 Year-on-Year 0.1% 9.5% 13.3% Excludes SP: 3.0% Growth Includes SP: 10.7% (excludes SP)

(a) Refer to the unaudited Proforma Balance Sheet of MGCCT as of Listing Date as disclosed in the Prospectus. Based on exchange rates: S$1 = HK$6.28 and S$1 = RMB5.08. (b) Based on exchange rates S$1 = HK$6.12 and S$1 = RMB4.83. (c) Based on exchange rates S$1 = HK$5.62 and S$1 = RMB4.46. (d) Valuation methodologies used as of 31 March 2016 by independent valuer include: Term & Reversion Analysis and Discounted Cash Flow Analysis. Based on exchange rates S$1 = HK$5.627 and S$1 = RMB4.720. (e) Purchase price as of 7 March 2013 (IPO). (f) As of Acquisition date of 17 June 2015. Based on exchange rate: S$1 = RMB4.57. Annual Report 2015/2016 39 OVERVIEW Well-staggered Debt Maturity CASH FLOWS AND LIQUIDITY As of 31 March 2016 MGCCT’s cash and bank balances amounted to S$206.1 million as of (HK$ million) 31 March 2016, compared with 4,200 4,010 S$125.1 million as of 31 March 2015.

3,500 As a result of improved operational STRATEGY performance, net cash provided by 2,800 2,498 operating activities for FY15/16 was 2,273 2,100 2,101 higher at S$264.9 million compared with S$223.0 million for FY14/15. 1,400 1,723 1,231 1,039 Net cash used in investing activities PERFORMAN 700 581 for FY15/16 was S$335.4 million, 0 550 compared with FY14/15 of S$5.2 million, Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 mainly due to the acquisition of Sandhill

% of total Plaza. Correspondingly, net cash C

18% 29% 15% 17% 4% 8% 9% E debt maturing provided by financing activities in FY15/16 Bank Debt Bonds was S$108.1 million, compared to the

net cash used in financing activities of GOVERNANCE & Su Key Financial Indicators S$229.3 million in FY14/15, primarily As of As of due to additional borrowings to fund 31 March 2016 31 March 2015 the acquisition of Sandhill Plaza, partially offset by higher distribution Total Debt Outstanding (million) HK$13,733 HK$11,286 to Unitholders. Gearing Ratio (%)(a) 39.5 36.2 (a)

Interest Cover Ratio (times) 3.9 5.0 stainabi ACCOUNTING POLICIES Average Term to Maturity for Debt (years) 3.01 2.75 The financial statements have Average All-in Cost of Debt (% per annum) 2.83 2.55 been prepared in accordance with

Unencumbered Assets as % of Total Assets (%) 100 100 the Statement of Recommended l ity MGCCT Corporate Rating by Moody’s Baa1 Stable Baa1 Stable Accounting Practice 7 (“RAP 7”)

(a) This is within the financial covenants stipulated in the unsecured debt facility agreements. “Reporting Framework for Unit Trusts” issued by the Institute of Singapore Chartered Accountants, the applicable FINANCIA established policies and limits, the interest costs and limiting MGCCT’s requirements of the Code on Collective Manager also seeks to balance the exposure to rising interest rates. Investment Schemes issued by the probability of risks occurring, the Monetary Authority of Singapore and L S & O impact and cost of managing them. To manage foreign currency exposure, the provisions of the Trust Deed.

Further details of MGCCT’s financial the Manager uses currency forwards to RAP 7 requires that accounting policies thers risk management objectives and policies hedge expected portfolio distributable adopted should generally comply with can be found under Note 22 of the income four quarters forward, on a the recognition and measurement Financial Statements. rolling basis. As of 31 March 2016, more principles of Singapore Financial than 70% of the expected HKD and Reporting Standards. Since listing, MGCCT has been RMB distributable income for the period adopting appropriate hedging strategies from 1 April 2016 to 30 September SENSITIVITY ANALYSIS to manage interest rate and foreign 2016 (“1H FY16/17”) has been hedged As of 31 March 2016, interest cost on currency exposure so as to ensure into SGD. The Manager will continue 77% of the total debt was fixed, stability of distributions to Unitholders. to actively monitor the markets and minimising exposure to interest rate Almost all of the borrowings are progressively hedge distributable volatility. It is estimated that an increase denominated in HKD with a small income as appropriate. of 50 basis points in the interest rate percentage of total borrowings would result in a 1.2% reduction in denominated in RMB, providing a The fair value of derivative financial distributable income. MGCCT has natural hedge for MGCCT’s portfolio instruments stood at S$9.6 million a gearing ratio of 39.5% as of properties. As of 31 March 2016, (2015: Nil) of assets and S$16.3 million 31 March 2016. A 1.0% increase interest cost on 77% of the borrowings (2015: S$30.0 million) of liabilities. in portfolio valuation would improve was fixed using interest rate swaps, This represented 0.2% (2015: 0.9%) the gearing by approximately cross currency interest rate swaps and of the net assets of MGCCT Group 0.4 percentage point. fixed rate notes, providing certainty of as of 31 March 2016. 40 Mapletree Greater China Commercial Trust Operations Review

For FY15/16, in addition to proactive management of retail and office leases at the properties, the Manager had embarked on asset enhancement initiatives (“AEI”) at Gateway Plaza and Festival Walk, and executed the strategic acquisition of Sandhill Plaza.

The Disney Tsum Tsum event was one of the most popular marketing events at Festival Walk.

Strategic Acquisition Active Asset Management the mall. These included kate spade for Growth MGCCT’s proactive leasing strategy new york, fresh, Geox, Nespresso, Nike In June 2015, MGCCT made its contributed to continued strong demand Basketball, 10/10 Hope and Zara Home first acquisition since listing with the from existing and prospective tenants, as well as the first Ferrari Store Junior purchase of Sandhill Plaza located in thus achieving a healthy portfolio in Hong Kong. New F&B brands which Pudong, Shanghai at a consideration of occupancy rate of 98.6% as of 31 March expanded the wide range of dining S$413.0 million1. The addition expanded 2016. Festival Walk and Sandhill Plaza choices at Festival Walk include the REIT’s footprint to Shanghai, the were fully leased, while Gateway Plaza An Nam, a Vietnamese dining outlet, first-tier commercial hub in the People’s maintained a high occupancy rate of sen-ryo’s Japanese restaurant flagship Republic of China. Completed at the 96.8%, attesting to the high quality store and TamJai SamGor, a specialty end of 2012, Sandhill Plaza is a premium of the assets. noodle shop at the popular “FoodFest” business park property in Zhangjiang foodcourt. Novelty concept stores were Hi-tech Park, designated as a Free Festival Walk introduced during the year, starting Trade Zone. Enjoying good accessibility Refreshing Tenant Mix with the first and only pop-up store in and transportation links, the property To enhance shoppers’ experience and Hong Kong selling merchandise from is situated within a 30-minute drive cater to the latest retail trends, the the movie “Ted 2”. from Pudong International Airport and Manager further strengthened Festival Lujiazui Central Business District as Walk’s positioning as a top destination Exciting Events and Promotions well as within a 5-minute walk to the mall by refreshing its tenant mix in food & The mall remains an attractive location nearest metro station. Sandhill Plaza, beverage (“F&B”), apparel, cosmetics for marketing promotions, events and which spans an overall Gross Floor and sportswear, recording a tenant social activities. During the year, many Area (“GFA”) of 83,801 square metres, retention rate of 41% as of 31 March of the crowd pullers including festive comprises one 20-storey tower, seven 2016. All retail leases in FY15/16 were blocks of three-storey buildings2 and renewed or re-let at a high average 1 Based on exchange rate: S$1 = RMB4.57. two basement levels of car park. As of rental uplift of 37%. Several established 2 Note that there are eight blocks of low-rise (3-storey) 31 March 2016, Sandhill Plaza was fully and popular brands as well as new retail buildings within the subject premises. However, one block is separately owned by a third party, and does not form occupied with a large concentration of and lifestyle concepts were added to part of the acquisition. multinationals and corporates from the communications, industrial, information Occupancy Rates technology and research & development As of 31 March sectors. The growing trend towards decentralisation, where office tenants 2016 2015 2014 benefit from significant cost savings, Festival Walk 100.0% 100.0% 100.0% favourable tax incentives and improved Gateway Plaza 96.8% 98.0% 97.5% accessibility, is expected to further Sandhill Plaza 100.0% n.a. n.a. enhance the demand for rental in Portfolio 98.6% 98.8% 98.5% Sandhill Plaza. Annual Report 2015/2016 41 OVERVIEW event openings, shop openings and marketing campaign to publicise its Gateway Plaza and Sandhill Plaza charity fund-raising events were graced new theme “In You Inspired” through The other office assets, Gateway Plaza by Hong Kong celebrities, attracting print advertorials, outdoor banners, and Sandhill Plaza, also contributed media, fans and shoppers to the mall. lightboxes, bus advertisements and positively to the portfolio’s NPI growth The first-of-its-kind Disney Tsum Tsum social media activation. Other for FY15/16. At Gateway Plaza, office

Festival exhibition was a resounding customer-centric activities during the leases that expired in FY15/16 were STRATEGY success, drawing thousands of fans year include a new mobile application renewed or re-let at an average uplift of and shoppers to the eye-catching “U-Card App” for the U-Card loyalty 25% compared with those of preceding decorative installations as well as the programme for the university students leases, and recorded a retention rate pop-up store which sells limited-edition as well as the launch of a WeChat site to of 66%. The new leases represent products. Festival Walk also hosted the actively connect with users in the digital tenants from education, shipping and first “Batman v Superman: Dawn era. “Glacier”, the ice rink, continued to professional services sectors. For PERFORMAN of Justice” mall event in Hong Kong be a popular venue for many local Sandhill Plaza, there were only two ahead of the film release, featuring a and regional skating competitions leases that expired in the year and 1:1 scale replica of the Batmobile, as as well as performances. were renewed or re-let at an average well as life-sized statues of Batman rental uplift of 33%. C and Superman. Catering to fans of Pink Retail Sales and Shopper Traffic E Panther, the mall held a spectacular The busy year-long calendar of events The office and retail leases of MGCCT’s

Pink Panther-themed party featuring the attracted a high shopper traffic of properties typically have a three-year GOVERNANCE & Su season’s hottest fashions, latest beauty 40.4 million and tenant sales of lease term, consistent with the usual products and irresistible F&B offerings, HK$5,321 million for Festival Walk in market practice in Hong Kong and set against a relaxing backdrop of a FY15/16. Compared to the same period China. As of 31 March 2016, at least model swimming pool, poolside bar, last year, the decline of 3.3% in footfall 90% of leases at Festival Walk (including palm trees and summer beach. Other and 5.3% drop in tenant sales for the both retail and office leases), 16% of popular events at the mall include tenant mall were largely due to the ongoing leases at Gateway Plaza and about product launches, car shows, sports renovations by the new cinema operator1 19% of leases at Sandhill Plaza have stainabi competitions and beauty shows. and continued headwinds affecting step-up structures in the base rent, Hong Kong’s retail sector especially in which contribute to stable and growing

Festive-themed marketing promotions the second half of the financial year. income streams. l were also organised in close partnership Expected to open in June 2016, the ity with banks and credit card companies new cinema will offer an enhanced including American Express, Citibank cinematic experience complete with and Bank of China. In October 2015, a VIP house, state-of-the-art digital FINANCIA 1 The cinema has been undergoing renovations Festival Walk launched an integrated projection and latest audio facilities. since early 2016. L S & O Portfolio Lease Expiry Profile by Percentage of Monthly GRI As of 31 March 2016 thers

Percentage (%) 40 36.4 35

30 29.4

25 22.4 20.8 20 20.2 17.6 15 13.0 10 7.4 6.4 5 4.4 3.2 3.4 3.7 3.5 3.7 2.2 1.4 0 0.2 0.5 0.2 FY16/17 F Y17/18 FY18/19 FY19/20 FY20/21 & beyond

No. of leases 162 122 95 16 23 Festival Walk: Lease Expiry by % of GRI Gateway Plaza: Lease Expiry by % of GRI Sandhill Plaza: Lease Expiry by % of GRI Portfolio 42 Mapletree Greater China Commercial Trust

Operations Review

MGCCT’s Top 10 Tenants by Monthly GRI As of 31 March 2016

Building Tenant Sector Trade Sector % of Monthly GRI 1 Gateway Plaza BMW Office Automobile 8.2 2 Festival Walk Arup Office Professional & Business Services 3.8 3 Festival Walk TaSTe Retail Departmental Store & Supermarket 2.8 4 Gateway Plaza China Fortune Land Office Financial Institution/Insurance/Banking/Real Estate 2.3 Development Co., Ltd. (CFLD) 5 Festival Walk Apple Retail Houseware, Electronics & Furnishings 2.1 6 Festival Walk I.T Retail Apparel & Fashion Accessories 1.9 7 Gateway Plaza Bank of China Retail Financial Institution/Insurance/Banking/Real Estate 1.8 8 Gateway Plaza Cummins Office Machinery/Equipment/Manufacturing 1.7 9 Sandhill Plaza Spreadtrum Office Machinery/Equipment/Manufacturing 1.4 10 Festival Walk H&M Retail Apparel & Fashion Accessories 1.3

MGCCT Trade Mix by Monthly GRI Breakdown of Tenants As of 31 March 2016 in MGCCT’s Portfolio As of 31 March 2016 % Apparel & Fashion Accessories 22.8 Property No. of Tenants Machinery/Equipment/Manufacturing 10.3 Festival Walk 182 Food & Beverages 10.3 Gateway Plaza 109 Financial Institution/Insurance/ Banking/Real Estate 9.0 Sandhill Plaza 58 Automobile 8.3 Total 349 Professional & Business Services 6.2 Leisure & Entertainment 5.9 contributed about 10.3% each. Only Personal Cosmetics 5.7 about 2.9% of the leases in terms of GRI Services 5.4 caters to the luxury shopping segment. Departmental Store & Supermarket 5.0 Collectively, the top ten tenants of the Houseware, Electronics & Furnishings 4.6 portfolio based on GRI accounted for Luxury Jewellery, Watches & Accessories 2.9 27.3% for the month of March 2016, with Information Technology 1.7 the largest tenant BMW contributing Natural Resources 1.1 8.2%. No single trade sector contributed Pharmaceutical/Medical 0.4 more than 22.8% of the portfolio’s GRI, Renewable Energy 0.2 mitigating concentration risk from any Others 0.2 one particular tenant or sector.

Driving Value Through Asset Enhancement Initiatives Favourable Lease FY15/16, the WALE based on the date As part of its strategy to support organic Expiry Profile of commencement of the leases was growth, the Manager identifies and As of 31 March 2016, MGCCT’s lease 4.1 years and they accounted for evaluates opportunities to enhance the expiry profile based on current leases 16.5% of GRI in FY15/16. quality and rental returns of its assets, remains well-staggered with a weighted particularly through more effective average lease expiry (“WALE”) by gross Strong and Diverse use of space. To further enhance the rental income (“GRI”) of 2.6 years1, an Tenant Base prime positioning of Gateway Plaza improvement from 2.4 years a year ago. MGCCT derives its gross income from as a premier Grade-A office building Based on committed leases, Festival a large base of 418 retail and office in Beijing, the Manager completed the Walk, Gateway Plaza and Sandhill Plaza leases from various countries across asset enhancement programme to add have a WALE of 2.3 years, 3.9 years and key trade sectors as of 31 March 2016. more F&B amenities as well as improved 1.7 years respectively. The leases that The Apparel & Fashion Accessories accessibility at the three-storey podium, are up for renewal in FY16/17, FY17/18 sector represented the largest source of and FY18/19 accounted for 29.4%, GRI of about 22.8%, while tenants from both the F&B sector and the Machinery, 1 During the year, one of the largest tenants of the 36.4% and 22.4% of the portfolio’s portfolio, by GRI, has committed a further five-year term, GRI respectively. For new leases in Equipment & Manufacturing sector which extended its lease from FY17/18 to FY22/23. Annual Report 2015/2016 43 OVERVIEW Spotlight on:

AEI at Gateway Plaza STRATEGY

Podium Area The pond area Before After next to the escalator was removed. A new PERFORMAN staircase and a pair of see- through lifts were installed

to improve C accessibility. E GOVERNANCE & Su

Podium Area (Rear View) A portion of the Before After rear stone wall was converted to glass curtain wall to create stainabi prominent frontage and visibility for the l

F&B units. ity FINANCIA L S & O

which connects the two office towers spanning a site area of about Update on Festival Walk thers of Gateway Plaza. Approximately 800 55,026 square feet in Kwun Tong, On 28 October 2015, Festival Walk (2011) square metres of under-utilised area had Kowloon. At a total development Limited, a Hong Kong company which been converted into F&B units. Improved cost of approximately HK$6.0 billion, is 100% wholly owned by MGCCT, as accessibility at the podium include a pair the site will house a Grade-A office the registered owner of Festival Walk, of new see-through lifts that would bring building with a total GFA of 660,301 filed an application to the Hong Kong users from the basement levels to all square feet to cater to the growing High Court for a declaratory order, in three levels of the podium, and a newly demand for quality office space with response to a letter dated 30 September installed staircase that allows ease of large floor plate and column-free. 2015 from the Lands Department (the access from the first to the third levels of The construction is expected to be “Letter”), to seek the Court to declare the podium. At Festival Walk, upgrading completed by the end of 2017. that two kiosks in Festival Walk, cited works to revitalise and refresh the mall’s In Beijing, the Sponsor acquired in the Letter, did not contravene the restrooms commenced during FY15/16. the Arca Building, a three-storey Conditions of Sale issued by the To be carried out in phases, the asset business park property with a Government of Hong Kong (which enhancement works are expected to be GFA of 19,695 square metres Conditions were dated 30 March 1993). completed by the end of FY16/17. that is located in Zhongguancun. The Manager has sought legal advice MGCCT has been granted a right of and is of the view that the said kiosks Sponsor’s Pipeline first refusal to acquire both assets in were and at all times in compliant with In Hong Kong, the Sponsor won the the event that the Sponsor decides fire safety regulations and the Conditions. tender for a prime commercial site to divest the assets. The proceedings are still ongoing. 44 Mapletree Greater China Commercial Trust Independent Market Research by Savills (Hong Kong) Limited, 31 March 2016

Hong Kong consumption and providing support to decentralised retail areas (Kowloon the overall Hong Kong retail market. East, Sha Tin and Quarry Bay), Hong Kong Economy which feature well-known territorial According to the Census and Statistics In 2016, the GDP of Hong Kong shopping malls including Festival Walk Department, Hong Kong’s Gross is forecast to increase by 1.5% in Kowloon East. 02 Domestic Product (“GDP”) increased according to the Census and Statistics moderately by 2.4% in 2015, compared Department. From 2017 to 2020, In 2015, a total of 190,000 sq ft of to a 2.6% increase in 2014, on the the trend in growth of Hong Kong’s shopping centre space was completed, back of a muted external performance economy is forecast at 3.0% per of which 101,073 sq ft came on stream from external economies which Hong annum, compared to the previous in Causeway Bay/Wan Chai. The Kong is heavily reliant on. Tourist arrivals 5-year (2011-2015) average trend average vacancy rate of shopping in Hong Kong declined by 2.5% to growth of 2.9% per annum. 01 04 centres in the seven key retail areas 59.3 million in 2015 due to a decrease (comprising four core and three in Mainland visitors. As a result, retail Hong Kong Retail Market1 key decentralised areas) stood at sales performance softened in 2015, Supply and Vacancy 7.3% in 2015 with a slight negative with total retail sales value down Total retail stock amounted to net absorption of 75,000 sq ft net, 3.7% to $475.2 billion and down 0.3% 116.7 million sq ft in 2015, of which compared to a vacancy rate of in volume when compared to 2014. 7.7%, or 9.0 million sq ft was vacant. 6.9% in 2014. 03 However, the labour market in Out of the leased space, 10.2 million sq Hong Kong remained strong, with ft of shopping centres was concentrated the unemployment rate maintained within four core retail areas comprising

at a low level of 3.3% at the end of Central, Tsim Sha Tsui, Mong Kok and 1 Unless otherwise stated, all floor areas in this section 2015. Private consumption grew by Causeway Bay/Wan Chai. In the rest are “internal floor area”, which is defined as the area of all enclosed space of the unit measured to the internal 4.8% in 2015, reflecting strong local of Hong Kong, there are three key face of enclosing external and/or party walls.

01 Hong Kong GDP, GDP Growth and Unemployment Rate, 2010–2017F

(HK$ billion) (%) 2,400 7.2

2,000 6.0

1,600 4.8

1,200 3.6

800 2.4

400 1.2

0 0 2010 2011 2012 2013 2014 2015 2016F 2017F

Real GDP (LHS) Real GDP Growth Year-on-Year (RHS) Unemployment Rate (RHS)

Source: Census and Statistics Department, FocusEconomics Note: Figures for 2016 to 2017 are based on forecasts

02 Hong Kong Retail Market Key Metrics Total Stock Total Projected Stock 1Q/2016 Average as of End 2015 by End 2016 Monthly Rents Segment (million sq ft) (million sq ft) (HK$ per sq ft)

Prime street shops 2.0 2.0 $650 Shopping malls in four core retail areas 10.2 10.2 $590 Shopping malls in rest of Hong Kong(a) 38.2 38.9 $170 Others 66.3 66.9 NA Total 116.7 118.0 –

Source: Hong Kong Government’s Rating and Valuation Department and Savills Research & Consultancy (a) Includes the three key decentralised retail areas Annual Report 2015/2016 45 OVERVIEW 03 New Supply, Net Absorption and Vacancy Rates of Shopping Centres in Hong Kong’s Four Core Retail Areas and Three Key Decentralised Retail Areas, 2010 – 2015

(’000 sq ft) (%) 1,600 9.0

1,400 8.0 STRATEGY

1,200 7.0

1,000 6.0

800 5.0 PERFORMAN 600 4.0

400 3.0

200 2.0 C E 0 1.0

-200 0 GOVERNANCE & Su 2010 2011 2012 2013 2014 2015

New Supply (LHS) Net Absorption (LHS) Vacancy Rate (RHS)

Source: Rating and Valuation Department, Savills Research & Consultancy

Between 2016 and 2018, approximately Mainland tourist spending and local visits, while the revision of the policy

4.0 million gross sq ft (3.0 million net sq ft) consumption demand continue to drive on one-year, multiple-entry Individual stainabi of shopping centre space will be added Hong Kong’s retail market. Nevertheless, Visit Endorsements (commonly known in Hong Kong. The development pipeline the change in shopping behavior of as ‘multiple-entry endorsements’) to

includes five large-scale retail malls (gross Chinese visitors and the depreciation of one visit per week in 2015 kept visitor l ity floor area over 200,000 sq ft), none of which the Renminbi against the Hong Kong numbers in check. Coupled with China’s is in the vicinity of Festival Walk. The retail Dollar have impacted Mainland visitor ongoing anti-corruption measures portion of the redevelopment of the New arrivals which declined by 3.0% to and slowing economic growth, this World Centre (approximately 1.0 million 45.8 million in 2015. In addition, the has further reduced Mainland tourist FINANCIA gross sq ft) in Tsim Sha Tsui is the only protests against Mainland visitors in spending on luxury goods to focus more large-scale retail project and is expected 2014 and 2015 deterred Mainland on the ‘affordable luxury’ category. 04

to be positioned as a high-end mall. The L S & O remaining upcoming large-scale malls are

positioned at the mid-to-high end and are 04 Hong Kong Visitor Arrivals and Retail Sales Index, 2010 – 2015 thers located outside the seven key retail areas (Average Monthly Indices from in non-prime retail locations in Kowloon (Million) Sep 2009 - Oct 2010 = 100) (Nam Cheong) and New Territories 80 160 (Tsuen Wan, Tsing Yi and Tung Chung). 70 140

Demand 60 120 Amid slower visitor arrivals growth and an uncertain economic outlook, Hong Kong 50 100

retail sales saw a slowdown in sales of 40 80 high-end items, with jewellery, watches and clocks, and valuable gifts down in 30 60 value by 15.6% in 2015. On the domestic 20 40 front, consumption demand showed a mixed picture with consumer durables 10 20 rising by 6.1% but clothing, footwear 0 0 and allied product sales falling by 6.7%. 2010 2011 2012 2013 2014 2015 Sales of foodstuffs and at supermarkets however, remained resilient, with sales up Mainland Visitor Arrivals (LHS) Other Visitor Arrivals (LHS) Retail Sales Index (RHS) by 5.9% and 1.3% respectively in 2015. Source: Census and Statistics Department, Hong Kong Tourism Board and Savills Research & Consultancy 46 Mapletree Greater China Commercial Trust

Independent Market Research by Savills (Hong Kong) Limited, 31 March 2016

Stability in the labour market and 05 Hong Kong Shopping Centre Rental Index by District, consistently low unemployment have 1Q/2010 – 1Q/2016 supported local retail consumption. The proliferation of international retail (Rebased 1Q/2010=100) brands in decentralised areas has also 300 helped to boost local consumption 250 for such items. Competition from e-commerce has so far been minimal as 200 the bulk of local online purchases are still focused on low-cost items and products 150 not readily available in the local market. 100 The estimated e-commerce market in Hong Kong in 2014 was HK$3.5 billion1, 50 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q representing only 0.7% of total retail 2010 2011 2012 2013 2014 2015 16 sales in 2014 of HK$493.2 billion. Overall Tsim Sha Tsui Island East Kowloon East Mong Kok Sha Tin Central Causeway Bay/Wan Chai Rents Source: Savills Research & Consultancy The strong take-up of leasing space by international retailers and the proactive management of landlords continue 06 Hong Kong Retail Price Index and Retail Yields, 1Q/2010 – 4Q/2015 to support shopping mall rents. Rents for shopping malls increased by 4.5% (Rebased 1999=100) (%) year-on-year (“y-o-y”) in 1Q/2016, with 600 3.6 2 rents in Kowloon East outperforming 500 3.0 the overall market, registering a 10.2% increase. 05 400 2.4

300 1.8 Gross Yields and Retail Sales Index The low global interest rate environment 200 1.2 and the low cost of capital, coupled 100 0.6 with tight stock availability, have pushed retail prices up from 2010 onwards, 0 0 registering a 145% increase from 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q/2010 to 3Q/2015. While retail yields 2010 2011 2012 2013 2014 2015 have remained at a low level of 2.4% Retail Price Index (LHS) Retail Yield (RHS) over the past two years, slowing luxury Source: Rating and Valuation Department, Savills Research & Consultancy retail demand from Mainland tourists is affecting the rental performance of prime street shop premises in core The resilience of local expected rises in interest rates by areas, leading to a 3% decline in consumption, robust the US Federal Reserve. This will overall retail prices in 4Q/2015 demand for retail space by put further pressure on overall retail compared to 3Q/2015. 06 international retailers and prices, especially if leasing demand remains weak. Outlook improving transportation, In the short term, the retail market in will underpin the performance The challenge for shopping centres in Hong Kong will remain impacted by of the decentralised retail the longer term will be the penetration a strengthening domestic currency, market (including Kowloon of e-commerce to a wider spectrum of China’s economic slowdown and the East where Festival Walk goods and services. However, as more anti-corruption campaign in China. is located). online stores are now opening physical The shift in preference of mainland shops to provide a more holistic visitors towards mid-end products will shopping experience, the threat of result in retail landlords adjusting their transportation, will underpin the e-commerce replacing physical stores tenant mix to meet the new demand. performance of the decentralised should be mitigated to some extent. retail market. The resilience of local consumption, robust demand for retail space by However, the low retail yield of 2.4% 1 Source: Ekos Global 2 Shopping mall rental basket in Kowloon East includes international retailers and improving in 2015 is expected to rise alongside Festival Walk. Annual Report 2015/2016 47 OVERVIEW Hong Kong Office Market1 07 Hong Kong Grade-A Office Market Key Metrics by District Supply and Vacancy Total Stock as of End 2015 1Q/2016 Average Monthly Rents Central is Hong Kong’s administrative District (million sq ft) (HK$ per sq ft net effective) centre and central business district Central 17.5 117.0 (CBD) while Wanchai/Causeway Bay Wanchai/Causeway Bay 9.8 68.1

and Tsim Sha Tsui are the other two STRATEGY core business locations. A notable Tsim Sha Tsui 8.5 52.0 trend in the office market witnessed Island East 8.0 47.5 over the past few years has been Kowloon East 13.6 35.8 tenant relocations to non-core locations, Western Corridor 8.3 34.0 such as Kowloon East and Western Others 11.6 NA Corridor, supported by significant Overall 77.3 65.5 PERFORMAN rental differentials between core and Source: Rating and Valuation Department, Savills Research & Consultancy non-core areas. Total Grade-A office stock reached 77.3 million sq ft and the

vacancy rate hit 7.8% at the end of 2015 strata-titled stock held by investors, New Grade-A office supply in Hong Kong C compared to 6.4% at the end of 2014 accounting for 82%. Compared to 2014, between 2016 and 2018 is expected to E according to Hong Kong’s Rating and 1.33 million sq ft more office space amount to 6.3 million sq ft, or 2.1 million

Valuation Department. Savills believes was added in 2015, of which 62% was sq ft per annum, which is higher than GOVERNANCE & Su that the bulk of this vacancy is vacant developed in Kowloon East. 07 08 the historical six-year annual average (2010–2015) of 1.2 million sq ft. In terms 08 Hong Kong Overall Grade-A Office New Supply, Net Absorption and of demand, the take up from 2010 to Vacancy Rates, 2010 – 2015 2015 averaged around 1.5 million sq ft per annum, which is lower than the upcoming (’000 sq ft) (%) 2.1 million sq ft per annum of new supply.

3,600 9.0 Savills also notes that much of the stainabi future stock will be strata-titled for sale, 3,000 7.5 accounting for 23% or 1.4 million sq ft

2,400 6.0 between 2016 and 2018. 08 09 l ity

1,800 4.5 Around 80% or 5.0 million sq ft of the 1,200 3.0 new supply from 2016 to 2018 will come from outside the core business districts, FINANCIA 600 1.5 with about 2.3 million sq ft from Kowloon

0 0 East, including Mapletree Investments’

2010 2011 2012 2013 2014 2015 Grade-A office development (660,301 L S & O gross sq ft) scheduled for completion in New Supply (LHS) Net Absorption (LHS) Vacancy Rate (RHS)

2017. The new supply in Kowloon East thers Source: Rating & Valuation Department, Savills Research & Consultancy will inevitably create some short term pressure on both occupancy and rental 09 Estimated Hong Kong Future Grade-A Office Supply, 2016 – 2018 levels, but in the long-run, the potential clustering of high quality Grade-A offices (’000 sq ft) should strengthen the area as it emerges 2,400 as the second CBD of Hong Kong (CBD2). Based on Savills’ estimates, in 2,000 the long term, Kowloon East will surpass 1,600 Central, to account for 44% of total Grade-A office stock in Hong Kong, 1,200 upon the full development of Kai Tak 800 and the substantial redevelopment of industrial buildings in the area into 400 Grade-A offices. 09

0 Central Wanchai/ Tsim Sha Tsui Island East Kowloon East Western Others Causeway Bay Corridor 1 All floor areas in this section are “internal floor area” 2016 2017 2018 unless otherwise stated, which is defined as the area of all enclosed space of the unit measured to the Source: Buildings Department and Savills Research & Consultancy internal face of enclosing external and/or party walls. 48 Mapletree Greater China Commercial Trust

Independent Market Research by Savills (Hong Kong) Limited, 31 March 2016

Demand and Vacancy 10 Hong Kong Grade-A Office Vacancy by District, 1Q/2010 – 1Q/2016 The overall Grade-A office vacancy rate in Hong Kong remained low at around (%) 2%. Demand for Grade-A office space in 15.0 the central parts of Hong Kong remained 12.5 strong in 2015 due to strong take-up by both local and mainland companies 10.0 in light of the Stock Connect schemes and the Mainland-Hong Kong Mutual 7.5 Recognition of Funds regulation. In 5.0 Kowloon East, demand was mainly driven by tenant relocations including 2.5

MNCs who are more cost-conscious 0 and relatively flexible in terms of 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q location. This led to a vacancy rate 2010 2011 2012 2013 2014 2015 16 in Kowloon East of only 2.7% by Central Wanchai/Causeway Bay Island East Tsim Sha Tsui Kowloon East Western Corridor the end of March 2016. 10 Source: Savills Research & Consultancy

Rents Supported by expansion demand in core areas and cost-saving relocation 11 Hong Kong Grade-A Office Rental Index by District, 1Q/2010 – 1Q/2016 demand in non-core areas, Grade-A (Rebased 1Q/2010 = 100) office rents in Hong Kong enjoyed strong 200 growth of 8.5% in 2015 and continued to grow by 2.1% in 1Q/2016 to reach 170 an average of HK$65.5 per sq ft, net effective per month. In Kowloon 140 East, rents grew slightly by 0.3% in 110 1Q/2016 compared to 4Q/2015 to reach HK$36 per sq ft, net effective 80 per month due to increased 50 competition in the vicinity. 07 11 20 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Capital Values and Gross Yields 2010 2011 2012 2013 2014 2015 16 Historically, Grade-A office yields Central Wanchai/Causeway Bay Island East Tsim Sha Tsui Kowloon East Western Corridor compressed on the back of quantitative easing measures introduced in both Source: Savills Research & Consultancy the US and Mainland China since 2010. Correspondingly, office yields have remained between 2.9% and 3.1% 12 Hong Kong Grade-A Office Capital Values and Gross Yields since 2013. 12 1Q/2010 – 1Q/2016

Outlook (HK$ per sq ft gross) (%) Looking ahead, rents are expected 15,000 4.0 to rise steadily due to a lack of available space in 2016, even if 12,500 3.7 demand remains relatively weak. 10,000 3.4 However, with 6.3 million sq ft of new office supply (80% outside of 7,500 3.1 the core business districts) expected 5,000 2.8 to enter the market from 2016 and beyond, vacancy rates are expected 2,500 2.5 to rise which will likely prove a 0 2.2 turning point for Grade-A office 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q rents. Meanwhile, capital values of 2010 2011 2012 2013 2014 2015 16 Grade-A offices could decline in the Capital Value (RHS) Gross Yield (LHS) next three years due to softening Source: Savills Research & Consultancy Annual Report 2015/2016 49 OVERVIEW As the political and economic hub of six key service industries. This, The CBD2 initiative China, Beijing has maintained a GDP along with the easing of controls on will, in the long-run, growth rate very similar to that of China’s the financial markets, has boosted further transform countrywide figure. In 2015, Beijing confidence among foreign companies Kowloon East into achieved a respectable GDP growth in China’s market potential. Reflecting

an important core rate of 6.9% to reach RMB2,297 billion, this, FDI in Beijing reached US$13 billion STRATEGY business district outside according to the Beijing Municipal in 2015, up a staggering 43.8% from Central, which will in Statistics Bureau. 13 the previous year. 14 turn support economic growth and strengthen China’s service industry will play a Supply crucial role in attracting foreign direct Beijing had the largest and most

the territory’s global PERFORMAN investment (FDI) over the coming expensive office market in China by the competitiveness. decade. Having been selected in 2015 end of 1Q/2016, with a total stock of as the pilot city in China, Beijing opened 9.2 million sq m and an average effective its doors to a trial system for foreign achievable rent of RMB339.8 per sq

rents and rising interest rates. Given investment which saw increased m per month. Grade-A office leasable C Hong Kong’s reputation as an access to investment channels in stock comprises 7.2 million sq m or E international financial hub as well as

its close proximity to China, it should GOVERNANCE & Su continue to attract multinational companies to set up regional 13 Beijing GDP and GDP Growth, 2010 – 2017F headquarters/offices to tap both the Asian and China markets. (RMB billion) (%) 3,000 12 The CBD2 initiative will, in the 2,500 10 long-run, further transform stainabi Kowloon East into an important core 2,000 8 business district outside Central, 1,500 6 which will in turn support economic l ity growth and strengthen the territory’s 1,000 4 global competitiveness. 500 2 FINANCIA 0 0 Beijing 2010 2011 2012 2013 2014 2015 2016F 2017F GDP (LHS) Real Growth Y-o-Y (RHS) L

Beijing Office Market S & O Beijing’s Economy Source: Beijing Municipal Statistics Bureau, Focus Economics, Savills Research & Consultancy Note: Forecast assumes similar growth trajectory to the wider Chinese economy. On the back of a softening global thers economy, China’s GDP growth in 2015 registered 6.9% according to the National Statistics Bureau and is 14 Beijing Utilised FDI and Growth Rate, 2010 – 2015 forecast by the Asian Development

Bank to grow by 6.5% and 6.3% (US$ billion) (%) in 2016 and 2017 respectively. As 15.0 45.0 the economy continues to undergo a period of transition, growth in 12.5 37.5 domestic consumption and services 10.0 30.0 will continue to rise in importance. The backing from the ongoing 7.5 22.5 government spending and the 5.0 15.0 “One Belt, One Road” development strategy are expected to underpin 2.5 7.5 China’s economic growth, and 0 0 continue to support the development 2010 2011 2012 2013 2014 2015 of key industries such as finance, information technology (IT) & Utilised FDI (LHS) Utilised FDI Nominal Growth Y-o-Y (RHS) high-tech and manufacturing. Source: Savills Research & Consultancy 50 Mapletree Greater China Commercial Trust

Independent Market Research by Savills (Hong Kong) Limited, 31 March 2016

approximately 78% of the total office 15 Beijing Grade-A Office Market Key Metrics by Submarket space in Beijing. The city also has one Leasable Stock Leasable Stock Vacancy 1Q/2016 Rent of the lowest vacancy rates of any city as of end 1Q/2016 by end of 2018 Rate (RMB per sq m in China of 3.9% at the end of 1Q/2016, (million sq m) (million sq m) (%) per month) down from 4.8% at the end of 2014. 15 Prime 3.7 4.1 2.6 397.3 Non-prime 2.6 3.2 2.9 302.3 Beijing’s office market is divided Emerging 0.9 1.5 10.7 284.7 into three prime locations (CBD, Beijing Financial Street [BFS] and Overall 7.2 8.8 3.9 339.8 Zhongguancun [ZGC]) and four Source: Savills Research & Consultancy non-prime but established business locations (CBD Vicinity, East Second Ring Road, East Chang’an Avenue the average vacancy rate climbed Demand Drivers and Lufthansa). Emerging business slightly from 3.6% at the end of 2015 to In Beijing, a significant proportion locations include Wangjing and 3.9% by the end of 1Q/2016. Beijing’s of occupiers are large state-owned Asian & Olympics as well as new Grade-A office market is expected to enterprises (SOEs), regional financial master planned areas such as the see increasing levels of supply over institutions and national headquarters Lize Financial Business District. the next three years from 2016 to of domestic companies. Multinational 2018, with an average annual supply corporations (MNCs) by contrast make The two largest districts, CBD and of 678,000 sq m, 2.1 times more than up a relatively small proportion of the BFS, account for 25% and 15% the average historical supply between total demand. Domestic companies of Grade-A office leasable stock 2013 and 2015. Only 30% of the new began to dominate demand from 2010, respectively. The Lufthansa area, supply is expected to be located in the and accounted for 75% of all recorded where Gateway Plaza is located, is prime areas of CBD and BFS, while leasing transactions in 2015. Overseas one of Beijing’s most established and a further 25% will be located in non- companies only contributed 25% of well-known international commercial prime markets such as CBD Vicinity, the total demand. zones with a current Grade-A office East Second Ring Road, East Chang’an stock of 625,000 sq m. This amounts Avenue and Lufthansa. The remaining Financial services companies continued to approximately 8.7% of Beijing’s total 45% will be in the emerging areas such to be the strongest demand driver for Grade-A leasable stock. as Wangjing and Asian & Olympics. Grade-A office space, accounting for As a result, the emerging areas are 34.0% of all recorded transactions in In 1Q/2016, a total of 46,400 sq m of likely to see greater competition among 1Q/2016. The rapid development of Grade-A office space was completed. landlords compared to other areas, the financial sector, including the Peer- Despite the strong performance of such as BFS and the CBD. However, to-Peer (P2P) financing companies, is new projects, a number of early lease between 2018 to 2020, supply in the largely supporting this trend, though terminations saw overall net absorption CBD area is expected to peak as it landlords of high quality Grade-A offices weaken, reaching only 12,650 sq m receives new supply averaging are increasingly reluctant to lease to at the end of the period. Consequently, 300,000 sq m per annum. 16 17 newly-launched financial companies

16 Beijing Grade-A Office New Supply, Net Absorption and Vacancy Rates, 2010 – 1Q/2016

(’000 sq m) (%) 1,200 12

1,000 10

800 8

600 6

400 4

200 2

0 0 2010 2011 2012 2013 2014 2015 1Q/2016

New Supply (LHS) Net Absorption (LHS) Vacancy Rate (RHS)

Source: Savills Research & Consultancy Annual Report 2015/2016 51 OVERVIEW

17 Beijing Estimated Future Grade-A Office Supply, 2016 – 2018 with no track record. Demand from IT & High-tech and Professional Services (’000 sq m) companies remains strong, accounting 960 for 26.6% of transactions in 1Q/2016. 18

800

Rents STRATEGY 640 After achieving double-digit growth in the early 2010s, Grade-A office rental 480 growth in Beijing began to moderate

320 in 2012, with rents declining slightly by 1.6% in 2013. However, growing

160 confidence in the market, backed by an PERFORMAN

0 increasingly stable economy, witnessed BFS CBD CBD East 2nd Ring Lufthansa Others demand strengthening. Consequently, Vicinity Road average Grade-A office rental rates 2016 2017 2018

rebounded by 2.2% in 2014. While C E Source: Savills Research & Consultancy demand has held stable, the anticipation of an influx of new supply has seen

rental growth largely constrained in GOVERNANCE & Su 18 Grade-A Office Demand Drivers recent years, rising by only 0.9% y-o-y (Transacted Floor Area) by Industry, 1Q/2016 in 2015. By the end of 1Q/2016, the % rental rate grew 0.5% to a city-wide Financial Services 34.0 average of RMB339.8 per sq m per Professional Services 14.1 month. In the Lufthansa area, rents Media & Cultural 13.5 have held stable at RMB295.5 per sq m IT & High-tech 12.5 per month by the end of 1Q/2016. stainabi Manufacturing 8.2 At first glance, average rents in non- Industrial 4.5 prime yet established business locations

E-commerce 4.1 may appear slightly below the city-wide l ity Pharmaceutical & Bio-tech 3.0 average. However, it is important to note Conglomerate 1.8 that rental ranges in these locations Energy 1.4 often have a large spread (RMB250 - FINANCIA Others 2.9 RMB350 per sq m per month), with top class assets in Lufthansa for example often commanding a rental premium

above other projects. 19 20 L S & O

Source: Savills Research & Consultancy thers

19 Beijing Grade-A Office Rental Index by Submarket, 1Q/2010 – 1Q/2016

(Rebased 1Q/2010 = 100) 350

300

250

200

150

100

50 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2010 2011 2012 2013 2014 2015 16 Overall Prime CBD CBD Vicinity Lufthansa East 2nd Ring Road East Chang’an Avenue BFS ZGC Others

Source: Savills Research & Consultancy 52 Mapletree Greater China Commercial Trust

Independent Market Research by Savills (Hong Kong) Limited, 31 March 2016

20 Beijing Grade-A Office Rents and Vacancy Rates by Submarket, 1Q/2016 vs 4Q/2015

(RMB per sq m per month) (%) 600 12

500 10

400 8 Average Rent of RMB339.8 300 6

200 4

100 2

0 0 CBD CBD Vicinity Lufthansa E. 2nd Ring E. Chang’an BFS ZGC Non-prime

1Q/2016 Rent (LHS) 4Q/2015 Rent (LHS) 1Q/2016 Vacancy Rate (RHS) 4Q/2015 Vacancy Rate (RHS)

Source: Beijing Statistics Bureau

Capital Values and Gross Yields of suburban areas and infrastructure, management services will have a Beijing’s Grade-A office capital is expected to speed up the competitive edge when it comes values continued to rise to an decentralisation trend. With the to rental negotiations. average of RMB74,600 per sq m in majority of the new supply located 1Q/2016, up 6.7% y-o-y1. This was in decentralised locations, overall Limited prime investment stock, largely supported by limited prime Grade-A office rents in Beijing are combined with steady demand from investment stock, combined with expected to fall to an average of both domestic and overseas investors, steady demand from both domestic RMB310 to RMB320 per sq m per is expected to support Grade-A and overseas investors. As a result, month over the coming two years. office capital values despite further Grade-A office gross reversionary Demand is not likely to absorb the rental declines. As a result, Grade-A yields further narrowed by 1 basis significant levels of new supply. office gross yields are anticipated to point (bps) to 5.46% compared Consequently, the city-wide vacancy continue on a moderately declining to 4Q/2015. 21 rate is expected to increase modestly trend throughout 2016. to about 7% to 8% over the short Outlook term. In established office markets, Over the next few years, the arrival of such as the Lufthansa area, it is anticipated that properties 1 The 6.7% y-o-y growth is calculated based on the new supply in the key office markets, capital value index from Savills with a base year of combined with the rapid development backed by international property 1Q/2010 = 100.

21 Beijing Grade-A Office Capital Values and Gross Yields, 1Q/2010 – 1Q/2016

(RMB per sq m) (%) In established 78,000 12

office markets, such 65,000 10 as the Lufthansa area, it is anticipated that 52,000 8

properties backed by 39,000 6 international property management services 26,000 4 will have a competitive 13,000 2 edge when it comes to 0 0 rental negotiations. 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2010 2011 2012 2013 2014 2015 16 Capital Value (LHS) Gross Yield (RHS)

Source: Savills Research & Consultancy Annual Report 2015/2016 53 OVERVIEW Shanghai 22 Shanghai GDP and GDP Growth, 2010 – 2017F

Shanghai Business (RMB trillion) (%) Park Market 3.0 11 Shanghai’s Economy 2.5 10

Shanghai’s GDP grew by 6.9% to STRATEGY reach RMB2.5 trillion in 2015. Tertiary 2.0 9 industries were the key driving force behind the city’s economy, contributing 1.5 8

67.8% of GDP in 2015, up 3% y-o-y. The 1.0 7 tertiary sector, especially financial and insurance institutions, professional and 0.5 6 PERFORMAN business service firms, and high-tech 0 5 and IT companies, is expected to be 2010 2011 2012 2013 2014 2015 2016F 2017F the major driver of economic growth GDP (LHS) Real Growth Y-o-Y (RHS) 22 over the coming years. C

Source: Shanghai Statistics Bureau, Focus Economics, Savills Research & Consultancy E Shanghai’s utilised FDI grew at a Note: Forecast assumes similar growth trajectory to the wider Chinese economy.

more moderate rate of 1.6% to reach GOVERNANCE & Su US$18.5 billion in 2015. According to the Shanghai Statistics Bureau, MNCs 23 Shanghai FDI and Nominal Growth Rate, 2010 – 2015 continue to choose Shanghai as a platform for conducting business in the (US$ billion) (%) region with 535 regional headquarters 24 24 and 396 foreign funded research centres 20 20 located in the city by the end of 2015. stainabi Shanghai was the first city in China to 16 16 have a free trade zone (FTZ) with the 12 12 goal of opening new industries to foreign l ity competition based on the negative list 8 8 approach1 and enabling the development 4 4 of trade, finance and capital flows as FINANCIA well as other liberalising pilot policies. 0 0 Initially limited to Waigaoqiao, Pudong 2010 2011 2012 2013 2014 2015 Airport and Lingang, the geographical Utilised FDI (LHS) Utilised FDI Nominal Growth (RHS) scope of the FTZ was later enlarged to L S & O include Zhangjiang Hi-tech Industrial Source: Shanghai Statistics Bureau, Savills Research & Consultancy

Development Zone (“Zhangjiang”), thers Jinqiao and Lujiazui. 23 24 Shanghai Grade-A Office Market Key Metrics Overview of the Shanghai Stock as of Stock by 1Q/2016 Rent Vacancy Office Market end 1Q/2016 end of 2017 (RMB per sq m Rate The Shanghai office market comprises (million sq m) (million sq m) per day) (%) core business areas2, decentralised Core2 6.5 9.2 8.7 5.7 3 business areas and business parks. Decentralised3 2.0 5.7 5.1 30.4 There are many business parks in Business Park4 6.1 7.2 4.1 8.6 Shanghai of varying sizes and Savills is of the opinion that the three most Source: Savills Research & Consultancy important and established business parks are Caohejing, located in Puxi, and Jinqiao and Zhangjiang, located in Pudong. The scope for this Shanghai business park market study comprises 1 Source: State Council. This refers to the sectors which are prohibited or restricted under the Negative List. 2 Core business areas are centrally-located established business districts typically located within Shanghai’s only these three business park areas. Inner Ring Road. 3 Decentralised business areas are located outside the Inner Ring Road and not located in core business areas or Business parks are located further business parks. away from the city centre and they offer 4 For the purpose of this report, Business Parks only include the three key parks comprising Caohejing, Jinqiao and Zhangjiang. 54 Mapletree Greater China Commercial Trust

Independent Market Research by Savills (Hong Kong) Limited, 31 March 2016

25 New Supply, Net Absorption and Vacancy Rates in Shanghai’s Three Key Business Parks, 2010 – 1Q/2016

(’000 sq m) (%) 800 24

700 21

600 18

500 15

400 12

300 9

200 6

100 3

0 0 2010 2011 2012 2013 2014 2015 1Q 2016

New Supply (LHS) Net Absorption (LHS) Vacancy Rate (RHS)

Source: Savills Research & Consultancy

tenants significant rental savings, with Key industries include information of which 643,000 sq m was added in rents often less than half those of office technology, biopharmaceuticals and 2015, and 100,000 sq m was added developments in core locations. 24 electronics assembly & manufacturing. in the first quarter of 2016. Zhangjiang accounted for 33%, or 2.05 million sq m. Background to Business Parks Improving infrastructure linkages, a Approximately 622,000 sq m of in Shanghai maturing business atmosphere as well Grade-A office space is expected Industrial and business parks have as significant cost saving and expansion to enter the business park market in been around in China for over 35 years. options have made business parks an 2016, followed by another 512,000 sq m Initially, industrial and business parks attractive choice for many companies. per year over the next two years. attracted primarily R&D, pharmaceutical Zhangjiang, located within Shanghai’s Between 2016 and 2018, Zhangjiang and manufacturing companies, by FTZ, also offers special economic and is forecast to witness the largest offering tax incentives and build-to-suit tax incentives. growth and is expected to account developments. However, following for nearly 61% of the new supply. the relocation of the manufacturing By the end of March 2016, there was Of the new supply in Zhangjiang, industries to the less developed 6.1 million sq m of Grade-A office 8% is expected to be of high-quality central and western regions in China, space in the three key business parks, Grade-A office space. 25 26 business parks in the first-tier cities saw the introduction of newer, higher-specification developments with 26 Future Supply of Shanghai’s Three Key Business Parks, 2016 – 2018 designs suited for conventional office

usage. Demand for business park (’000 sq m) space has also increased alongside 1,200 the development of the domestic and international high-tech manufacturing, 1,000

IT, e-commerce, trade and logistics 800 industries, combined with the establishment of the FTZ and 600 favourable government policies. 400

Supply 200 Zhangjiang, where Sandhill Plaza is 0 located, is the largest business park Caohejing Jinqiao Zhangjiang in Shanghai, covering an area of 42 sq km. It is also one of the earliest 2016 2017 2018 business parks to be established. Source: Savills Research & Consultancy Annual Report 2015/2016 55 OVERVIEW Demand and Vacancy 1Q/2016, with around 31,000 sq m vacancy rates have risen on the back of Strong demand from both domestic being absorbed, bringing vacancy rates additional supply as well as competition and overseas companies continues to down to 9.9%. 25 27 from decentralised space including drive take-up for quality office projects the Former Expo site, Hongqiao in the key business parks. In 1Q/2016, Demand for business parks as a whole transportation hub, Wujiaochang and

a total of 100,000 sq m of Grade-A in recent years has been largely driven Xuhui Binjiang. Rents in Caohejing STRATEGY office space was completed in the by the IT and high-tech enterprises, remained the highest at an average of three key business parks. Net take- pharmaceutical companies and some RMB4.24 per sq m per day, while rents up totalled 120,000 sq m in 1Q/2016, of the back office operations of financial in Zhangjiang ranked second at an lowering the average vacancy rate to institutions, with domestic companies average of RMB4.00 per sq m 8.6%. Given current rates of take- leading the growth. per day. 28 up and more limited development PERFORMAN opportunities in two of the three key Rents Gross Yields and Capital Values business parks, vacancy rates are Average rents for the three key business In recent years, gross yields of expected to remain in check or fall parks stood at roughly RMB4.06 per business park offices have experienced

in the coming two to three years. sq m per day by the end of 1Q/2016, mounting downward pressure as C Zhangjiang accounted for roughly up 1.0% compared to 4Q/2015. Rental investment activity has increased. As E a third of the total net take-up in growth has slowed in recent years as such, investors broadened their search GOVERNANCE & Su

27 Vacancy Rates in Shanghai’s Three Key Business Parks, 2010 – 1Q/2016

(%) Vacancy rates in 30 the three business stainabi 25 parks are expected to stay relatively constant, 20 allowing for moderate l

15 growth in rents for ity the more established 10 projects with strong

5 property management FINANCIA and easy access to 0 2010 2011 2012 2013 2014 2015 1Q 2016 transportation links. L Caohejing Zhangjiang Jinqiao S & O

Source: Savills Research & Consultancy thers

28 Average Rental Rates and Growth in Shanghai’s Three Key Business Parks, 2010 – 1Q/2016

(RMB per sq m per day) (%) 4.50 12

3.75 9

3.00 6

2.25 3

1.50 0

0.75 -3

0 -6 2010 2011 2012 2013 2014 2015 1Q 2016

Rent (LHS) Y-o-Y Growth (RHS)

Source: Savills Research & Consultancy 56 Mapletree Greater China Commercial Trust

Independent Market Research by Savills (Hong Kong) Limited, 31 March 2016

29 Capital Values and Gross Yields in Shanghai’s and sustained suburbanisation. Three Key Business Parks, 1Q/2010 – 1Q/2016 Additionally, there is expected to be continued government support for (RMB per sq m) (%) business parks as a means of coping 30,000 8.0 with rising congestion issues in the city centre. Foreign investment in 25,000 7.5 China is also expected to continue to 20,000 7.0 grow, with particular focus on areas covered by the FTZ. Vacancy rates in 15,000 6.5 the three business parks are expected 10,000 6.0 to stay relatively constant, allowing for moderate growth in rents for the 5,000 5.5 more established projects with strong

0 5.0 property management and easy access 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q to transportation links. Much of the 2010 2011 2012 2013 2014 2015 16 expected new supply in Zhangjiang is Capital Value (LHS) Gross Yield (RHS) located to the south of the established Source: Savills Research & Consultancy northern section, with developments occurring on a patchwork basis and public transportation infrastructure for higher yielding assets outside the Outlook being planned for. Tenants looking for traditional downtown office markets. While supply in the three business immediate occupation are still likely Shanghai business parks gross parks is forecast to rise, demand is to prioritise quality projects in the reversionary yields stood at roughly expected to increase resulting from established north section of the park, 6.2% by the end of 1Q/2016, equating to improved business environments, which offers better accessibility and approximately RMB22,780 per sq m. 29 continued investment in infrastructure, supporting amenities.

Limitations on the Report statements. The Consultant undertakes has relied upon external third-party This report contains forward-looking no obligation to publicly update or information and on statistical models statements which state Savills (Hong revise any forward-looking statements to generate the forward-looking Kong) Limited’s (the Consultant) beliefs, contained in this report, whether as a statements. It should be noted, and expectations, forecasts or predictions result of new information, future events or it is expressly stated, that there is no for the future. The Consultant stresses otherwise, except as required by law, and independent verification of any of the that all such forecasts and statements, all forward-looking statements contained external third-party documents or other than statements of historical in this summary report are qualified by information referred to herein. This fact, outlined in this report should be reference to this cautionary statement. report is limited to the matters stated regarded as an indicative assessment in it and no opinion is implied or of possibilities rather than absolute The report is prepared by the Consultant may be inferred beyond the matters certainties. The process of making for information only. While reasonable expressly stated herein. forecasts involves assumptions about care has been exercised in preparing a considerable number of variables the report, it is subject to change and For and on behalf of which are very sensitive to changing these particulars do not constitute, nor Savills (Hong Kong) Limited conditions. Variations of any one may constitute part of, an offer or contract. significantly affect outcomes and the Interested parties should not rely on Consultant draws your attention to this. the statements or representations of fact but must satisfy themselves The Consultant therefore can give no by inspection or otherwise as to the assurance that the forecasts outlined accuracy. No representation, warranty in this report will be achieved or that or covenant, express or implied, is given such forecasts and forward-looking and no undertaking as to accuracy, statements will prove to have been reasonableness or completeness of the Simon smith correct and you are cautioned not information contained in this report. In Senior Director to place undue reliance on such producing this report, the Consultant Head of Research & Consultancy Annual Report 2015/2016 57 Trust Structure OVERVIEW

Unitholders

Ownership of Units Distributions Trustee STRATEGY Trustee Fees

Acts on behalf of Unitholders PERFORMANCE

1 Property Management Management Services Fees Property Manager Manager2

Responsible for Management Property Responsible for Fees Management Services Managing MGCCT’s assets Providing property management, GOVERNAN and liabilities lease management, project Setting strategic direction management and marketing services of MGCCT Ownership of Assets Dividends Giving recommendations C

to Trustee on acquisition, E divestment, development and/ & Su or enhancement of assets of s

MGCCT in accordance with its tainability stated investment strategy

100% 100% 100%

Cayman Islands

Beijing Gateway Plaza FINANCIA Claymore Limited (Cayman) Ltd. Glamour II Limited

Hong Kong L Festival Walk Festival Walk HK Gateway Plaza S & O Holdings Limited (2011) Limited Company Limited3 China Orient Limited thers

Shanghai Shanghai Zhan Xiang Real Estate Company Limited

Asset Level

Festival Walk Gateway Plaza Sandhill Plaza

1 The Trustee holds 100.0% of Mapletree Greater China Commercial Trust Treasury Company (S) Pte. Ltd., in which it holds 100.0% of Mapletree Greater China Commercial Treasury Company (HKSAR) Limited (the “Hong Kong Treasury Company”). The Hong Kong Treasury Company is a special purpose vehicle incorporated in Hong Kong and owned by MGCCT for the purposes of (i) lending, borrowing or raising money, (ii) carrying out foreign exchange and interest rate hedging activities, financial futures trading, financial derivatives trading and other risk management activities in foreign currency or (iii) any other treasury management functions for and on behalf of MGCCT. 2 The Property Manager is appointed pursuant to the Master Property Management agreement entered into between the Manager, the Trustee and the Property Manager. 3 HK Gateway Plaza Company Limited holds 100.0% of Gateway Plaza Property Operations (Beijing) Limited, a company incorporated in China. Gateway Plaza Property Operations (Beijing) Limited is established to facilitate the registration of tenancy agreements between HK Gateway Plaza Company Limited and tenants of Gateway Plaza. HK Gateway Plaza Company Limited pays Gateway Plaza Property Operations (Beijing) Limited the costs incurred in rendering such services, and an administrative cost equivalent to 5.0% of such costs. Both the Manager and Property Manager are wholly-owned subsidiaries of the Sponsor. 58 Mapletree Greater China Commercial Trust Organisation Structure

The Manager Mapletree Greater China Commercial Trust Management Ltd.

BOARD OF DIRECTORS

Mr Frank Wong Kwong Shing Mr Kevin Kwok Khien Mr Lok Vi Ming Chairman and Independent Non-Executive Director and Independent Non-Executive Director, Independent Non-Executive Director Chairman of the Audit and Risk Committee Chairman of the Nominating and Remuneration Committee and Member of the Audit and Risk Committee

Mr Michael Kok Pak Kuan Mrs Ow Foong Pheng1 Mr Hiew Yoon Khong Independent Non-Executive Director and Independent Non-Executive Director and Member Non-Executive Director and Member of the Audit and Risk Committee of the Nominating and Remuneration Committee Member of the Nominating and Remuneration Committee

Mr Chua Tiow Chye Ms Cindy Chow Pei Pei Non-Executive Director Executive Director and Chief Executive Officer

Joint Company Chief Executive Officer Secretaries Ms Cindy Chow Mr Wan Kwong Weng Ms See Hui Hui

Chief Financial OfficEr Ms Jean Low

INVESTOR Investment & Portfolio FINANCE RELATIONS Asset Management Management Mr Lawrence Ng Ms Jessie Hoe Ms Elizabeth Loo Mr Ng Chern Shiong Ms Ng Eharn Vice President Vice President Vice President General Manager Vice President

Investment & Asset Investment & Asset Management Management Asset Management (Hong Kong) (Beijing) (Shanghai) Mr Matthew Wong Mr Eddy Handaja Mr Miguel Su Senior Manager Senior Manager Manager

1 As per the SGXNet announcement on 20 April 2016, Mrs Ow has resigned as an Independent Non-Executive Director as well as a Member of the Nominating and Remuneration Committee with effect from 20 April 2016. Annual Report 2015/2016 59 OVERVIEW The Manager Festival Walk Mapletree Greater China Commercial Trust Management Ltd.

Ms Sandra Cheng

General Manager STRATEGY PERFORMANCE

Lease Management Marketing & & Tenant Technical Promotions Relations Operations Services Ice Rink Finance Ms Carol Chan Ms Vivian Lau Mr Johnny Kok Mr Eric Wong Mr Paul Wong Mr Simon Lam Head Head Head Deputy Head Head Head GOVERNAN C E

THE PROPERTY MANAGER & Su Mapletree Greater China Property Management Limited (“MGCPM”) s tainability

DIRECTORS Ms Nancy Ng-Lee Mr Tan Wee Seng Ms Shirley Tay Mr Michael Wu FINANCIA L LEASE MANAGEMENT PROPERTY MANAGEMeNT S & O & TENANT RELATIONS & TECHNICAL SERVICES Finance thers Ms Hazel Yeung Mr Michael Wu Ms Sally Li Senior Manager (Hong Kong) Head (Hong Kong) Manager (Beijing)

Mr Leo Liu Ms Becky Wong LeasIng Manager (Beijing) Manager (Hong Kong) Ms Rachel Guo Ms Sandy Chen Manager (Shanghai) PROPERTY MANAGEMeNT Manager (Shanghai) Ms Jie Xiaoxi Ms Sylvia Shang Assistant Manager (Beijing) Manager (Beijing)

Mr Jeffrey Xu Manager (Shanghai) 60 Mapletree Greater China Commercial Trust Board of Directors

MR FRANK WONG KWONG SHING MR KEVIN KWOK KHIEN Chairman and Independent Non-Executive Director Independent Non-Executive Director and Chairman of the Audit and Risk Committee

Mr Frank Wong Kwong Shing is the Chairman and an Mr Kevin Kwok Khien is an Independent Non-Executive Independent Non-Executive Director of the Manager. Director of the Manager and is the Chairman of the Audit and Risk Committee. Mr Wong is also an Independent Non-Executive Board Director of China Mobile Limited, a position he has held Mr Kwok is a Non-Executive Director and Chairman of since 2002, and a Non-Executive Board Director of the Audit Committee of the Singapore Exchange Ltd. both PSA International Pte Ltd and PSA Corporation He is also a Non-Executive Director and a member Limited, Singapore. of the Audit and Risk Management Committee of Wheelock Properties (Singapore) Ltd. He is a Council From 1999 to August 2008, Mr Wong was a key senior Member and Fellow of the Singapore Institute of leader at DBS Group Holdings Ltd, Singapore, one of Directors and Chairman of the Accounting Standards the largest financial services groups in Asia. As Vice Council of Singapore. Chairman of DBS Bank, he had responsibility for the strategic development and financial performance of He was formerly a Senior Partner of Ernst & Young LLP all DBS’s revenue generating businesses. Mr Wong where he retired after 35 years with the firm. He was was also an Executive Board Director of DBS Group the Head of the firm’s Assurance Services in Singapore Holdings Ltd., and Chairman of both DBS Bank and ASEAN. (Hong Kong) Limited, Hong Kong and DBS Bank (China) Limited, China. Mr Kwok holds a Bachelor of Arts (Second Class Upper Honours, with Dual Honours in Economics Earlier in his career, from 1966 to 1999, he held a series and Accounting & Financial Management) from of progressively senior positions in Asia and Europe the University of Sheffield (UK). He qualified as a with major financial services firms including Citibank, Chartered Accountant and is a member of the Institute JP Morgan and NatWest. Mr Wong had also served in of Chartered Accountants in England and Wales. various roles with Hong Kong Government bodies and He is also a Chartered Accountant of the Malaysian business associations including terms as Chairman of Institute of Accountants and a Fellow of the Chartered the Hong Kong Futures Exchange Limited, Chairman of Malaysian Institute of Taxation. Mr Kwok is also a Fellow The Arbitration Panel for Leveraged Foreign Exchange of the Institute of Singapore Chartered Accountants. Trading and member of Hong Kong SAR’s Financial Services Development Council. Annual Report 2015/2016 61 OVERVIEW STRATEGY PERFORMANCE

MR LOK VI MING MR MICHAEL KOK PAK KUAN Independent Non-Executive Director, Independent Non-Executive Director and Chairman of the Nominating and Remuneration Member of the Audit and Risk Committee Committee and Member of the Audit and Risk Committee GOVERNAN

Mr Lok Vi Ming, Senior Counsel is an Independent Mr Michael Kok Pak Kuan is an Independent Non-Executive Director of the Manager and Non-Executive Director of the Manager.

is the Chairman of the Nominating and C E

Remuneration Committee. Mr Kok is currently a Non-Executive Director of Dairy & Su Farm International Holdings Limited, a leading retailer s

Mr Lok has been with Rodyk & Davidson LLP in Asia listed on the London Stock Exchange and the tainability (now known as Dentons Rodyk & Davidson LLP) since SGX-ST and a member of the Jardine Matheson Group. the start of his legal career 29 years ago. He is currently Mr Kok is also a Non-Executive Director of Jardine a senior partner in the firm’s Litigation & Arbitration Cycle and Carriage Limited and SATS Ltd. Practice Group, and heads the firm’s Aviation Practice. Prior to his retirement in December 2012, he was an A Fellow of the Singapore Institute of Arbitrators, Executive Director and Group Chief Executive Officer Mr Lok is an established arbitration practitioner and of Dairy Farm from April 2007, and was responsible FINANCIA arbitrator. He has been appointed to the Regional for over 5,400 outlets in the region, operating under Panel of Arbitrators with the Singapore International various well-known brands in the area of supermarkets,

Arbitration Centre, CIETAC Beijing and Shanghai, the hypermarkets, health and beauty stores, convenience L S & O Shenzhen Court of International Arbitration and with stores and home furnishings stores. Under his watch,

numerous other Arbitration Commissions in China. Dairy Farm employed over 85,000 people and annual thers sales grew from US$6.8 billion in 2007 to over US$10 In 2005, Mr Lok was appointed by the Honourable billion in 2011. Chief Justice as the head of the China Desk of the Committee for the International Promotion of Singapore Mr Kok joined Dairy Farm in 1987, and has over 30 Law, to promote Singapore law to corporations years’ experience in retailing in Asia. He also resided and state owned enterprises in China. He currently in Hong Kong from 2007 to 2012. He is a member of chairs the International Relations Committee and the the UK Chartered Institute of Marketing, and attended Professional Indemnity Committee of the Law Society. the Senior Executive Programme at London Business School and the Advanced Management Program at Mr Lok is currently a Fellow of the Singapore Academy Harvard Business School. of Law. He is also a member of the Board of the Singapore International Mediation Centre and is a Principal Mediator with the Singapore Mediation Centre.

Mr Lok holds a Bachelor of Law degree from the National University of Singapore. 62 Mapletree Greater China Commercial Trust

Board of Directors

MRS OW FOONG PHENG1 MR HIEW YOON KHONG Independent Non-Executive Director Non-Executive Director and Member of the and Member of the Nominating and Nominating and Remuneration Committee Remuneration Committee

Mrs Ow Foong Pheng is an Independent Mr Hiew Yoon Khong is a Non-Executive Director Non-Executive Director of the Manager. of the Manager.

As of 1 May 2016, Mrs Ow is the Permanent Secretary Mr Hiew is currently the Executive Director and Group (National Development) as well as the Permanent Chief Executive Officer of the Sponsor. He is also a Secretary in charge of the Municipal Services Office. Non-Executive Director of Mapletree Logistics Trust Prior to that, Mrs Ow was the Permanent Secretary Management Ltd. (Manager of Mapletree Logistics of the Singapore Ministry of Trade and Industry. She Trust), Mapletree Industrial Trust Management Ltd. started her career in the Administrative Service, in (Manager of Mapletree Industrial Trust) and Mapletree the Ministry of Education and subsequently served Commercial Trust Management Ltd. (Manager of in several ministries including National Development, Mapletree Commercial Trust). Finance, Defence, Home Affairs and Manpower. In 2006, she was appointed Chief Executive Officer, Mr Hiew joined the Sponsor in 2003 as Group Chief Jurong Town Corporation, Singapore’s principal Executive Officer. He has since led the Mapletree developer of industrial estate and related facilities. Group from a Singapore-centric real estate company worth S$2.3 billion to a global company with total Mrs Ow is also a Director of DBS Bank Ltd. and DBS assets in excess of S$30 billion. Group Holdings Ltd. She is also a member of the Audit Committee and Nominating Committee of DBS Bank From 2003 to 2011, Mr Hiew was concurrently Senior Ltd. and DBS Group Holdings Ltd. Managing Director (Special Projects) in Temasek Holdings. His past directorships include serving as Mrs Ow graduated with a Bachelor of Arts (Honours) a member on the Board of Trustees of the National degree in Political Science, Philosophy and Economics University of Singapore. from Oxford University. An Overseas Merit Scholar, she also holds a Master of Science in Management from Mr Hiew holds a Master of Arts degree in Stanford University. Economics from the University of Warwick, and a Bachelor of Arts degree in Economics from the University of Portsmouth.

1 As per the SGXNET announcement on 20 April 2016, Mrs Ow has resigned as an Independent Non-Executive Director as well as a Member of the Nominating and Remuneration Committee with effect from 20 April 2016. Annual Report 2015/2016 63 OVERVIEW STRATEGY PERFORMANCE

MR CHUA TIOW CHYE MS CINDY CHOW PEI PEI Executive Director and Chief Executive Officer Non-Executive Director GOVERNAN

Mr Chua Tiow Chye is a Non-Executive Director Ms Cindy Chow Pei Pei is both an Executive Director of the Manager. and the Chief Executive Officer of the Manager. C E

Mr Chua is the Group Chief Investment Officer of the She has more than 18 years of investment experience & Su Sponsor and is responsible for executing the Sponsor’s in the region, including Singapore, China, Hong s

international real estate investments and developments, Kong, India, Vietnam and Thailand. Prior to joining the tainability including entry strategies into new markets and Manager, Ms Chow was Chief Executive Officer, India, development of new products. Concurrently, Mr Chua with the Sponsor. She was instrumental in establishing is the Regional Chief Executive Officer, North Asia Mapletree Group’s business in India since 2007. and New Markets of the Sponsor where he has direct responsibility over the Sponsor’s non-REIT assets and Ms Chow joined the Sponsor in 2002 as Manager growth in these markets, i.e. South Korea, Hong Kong (Business Development) and was one of the key SAR, Australia and Japan, USA, Europe as well as members in executing the listing of Mapletree Logistics FINANCIA other opportunistic markets. Trust (“MLT”) on the Mainboard of the SGX-ST in July 2005. She later became the Senior Vice President

Mr Chua also serves as a Non-Executive Director of and Head of Investment for Mapletree Logistics Trust L S & O Mapletree Logistics Trust Management Ltd. He was Management Ltd. In that capacity, she was responsible

also previously the Chief Executive Officer of Mapletree for sourcing and evaluating potential acquisitions in thers Logistics Trust Management Ltd. the region, as well as recommending and analysing potential asset enhancement initiatives, with a view Prior to joining the Sponsor in 2002, Mr Chua held to enhance MLT’s portfolio. senior positions with various companies including Vision Century Corporation Ltd, Ascendas Pte Ms Chow holds a Master of Science in Real Estate Ltd, Singapore Food Industries Pte Ltd and United and a Bachelor of Science (Estate Management) Overseas Bank Ltd. (Second Upper Class Honours) from the National University of Singapore. 64 Mapletree Greater China Commercial Trust Management Team (Corporate)

1 2 3

4 5 6

7 8 9

10 11 12 Annual Report 2015/2016 65 OVERVIEW

1 MS CINDY CHOW Prior to joining the Manager, Ms Hoe holds a Bachelor of Executive Director and he held various positions including Accountancy (Honours) from the Chief Executive Officer Director of Business Development Nanyang Technological University.

at Keppel Land China Limited, She is also a Chartered Accountant STRATEGY Ms Chow is both an Executive and Senior Investment Manager (Singapore) of the Institute of Director and the Chief Executive and Associate Director of Asset Singapore Chartered Accountants. Officer of the Manager. Her Management at Mapletree experience is detailed in the Industrial Fund. Board of Directors’ section of 6 MS ELIZABETH LOO this Annual Report. Mr Ng holds a Bachelor of Science Vice President, Investor Relations PERFORMANCE (Real Estate) (Second Upper Class Honours) from the National University With more than 16 years of 2 MS JEAN LOW of Singapore and a Graduate experience in communications & Chief Financial Officer Diploma in Financial Management investor relations, Ms Loo has held from the Association of Chartered various senior positions at Sembcorp Ms Low has more than 22 years Certified Accountants. Marine Ltd, SMRT Corporation Ltd of regional experience in the and Creative Technology Ltd. GOVERNAN area of auditing, consultancy, risk management and 4 MR LAWRENCE NG Ms Loo obtained a Master of performance measurement. Vice President, Finance Science in Industrial Administration from the Carnegie Mellon University C

Prior to joining the Manager, E

Mr Ng has 17 years of experience in and a Bachelor of Science & Su Ms Low was the Head of Risk financial and management reporting, (Computer Science & Information

Management and Performance auditing and finance related work. Systems) (Second Upper Class s tainability Measurement with the Sponsor Honours) from the National where she was responsible for Prior to joining the Manager, University of Singapore. She is also overseeing the management and Mr Ng held various finance a Chartered Financial Analyst. monitoring of the Sponsor’s portfolio positions with the Sponsor. risk as well as the development of Before that, Mr Ng had worked the Sponsor’s internal performance in Pan-United Corporation Ltd 7 MS NG EHARN measurement framework. and Ernst & Young LLP. Vice President, Portfolio Management FINANCIA

Ms Low holds a Master of Business Mr Ng holds an Association of Ms Ng has over ten years of experience in consulting, investment, Administration from the London Chartered Certified Accountants L Business School and a Bachelor professional qualification. He is treasury and risk management. S & O of Science in Economics from the also a non-practising member thers London School of Economics. of the Institute of Singapore Prior to joining the Manager, Ms Ng She is also a Fellow of the Institute Chartered Accountants. had worked in Singapore Power of Chartered Accountants in and Dragonfly Consultancy. England and Wales. 5 MS JESSIE HOE Ms Ng holds a Master of Business Vice President, Finance Administration from the Columbia 3 MR NG CHERN SHIONG Business School, the London General Manager, Investment Ms Hoe has 17 years of experience in Business School and the University and Asset Management auditing, financial and management of Hong Kong (“EMBA Global Asia”) reporting. and a Bachelor of Accountancy Based in Shanghai, Mr Ng has with an additional major in Finance, 14 years of experience in the Prior to joining the Manager, with Magna Cum Laude, from the real estate business focusing Ms Hoe served as Director, Singapore Management University. on investment and asset Financial Analysis and Reporting management work. at Tiger Airways Holdings Limited. She started her career with Ernst & Young LLP. 66 Mapletree Greater China Commercial Trust

Management Team (Corporate)

8 MR MATTHEW WONG 10 MR MIGUEL SU Mr Wan has an LL.B. (Honours) Senior Manager, Investment and Manager, Investment and (Newcastle upon Tyne), where he was Asset Management (Hong Kong) Asset Management (Shanghai) conferred the Wise Speke Prize, and an LL.M. (Merit) (London). He also Based in Hong Kong, Mr Wong has Mr Su has over seven years of attended London Business School more than 10 years of experience real estate consulting, business Senior Executive Programme. He is in asset management, capital development, and research called to the Singapore Bar, where he management, investment, investor experience. was conferred the Justice FA Chua relations and research with Memorial Prize, and is also on the organisations including ARA Asset Prior to joining the Manager, Rolls of Solicitors (England & Wales). Management Limited, Macquarie Bank Mr Su held positions in Ascendas and Cushman and Wakefield. Pte Ltd. (Shanghai) and CBRE Group, He was conferred a Public Service Inc (Beijing). Mr Su started his career Medal (P.B.M.) in 2012 for his Mr Wong holds a Master of Finance as a real estate consultant at contributions to community service. from The University of Hong Kong KPMG LLP in Los Angeles. and a Bachelor of Applied Science from the University of Waterloo. Mr Su holds a Bachelor of Science 12 MS SEE HUI HUI in Industrial Engineering from Joint Company Secretary Purdue University. 9 MR EDDY HANDAJA Ms See is the Joint Company Secretary Senior Manager, of the Manager as well as Director, Asset Management (Beijing) 11 MR WAN KWONG WENG Legal of the Sponsor. Joint Company Secretary Mr Handaja has over 13 years of Prior to joining the Sponsor, Ms See experience in financial and Mr Wan is the Joint Company Secretary was in the Corporate/Mergers project management. of the Manager and concurrently Head, & Acquisitions practice group of Group Corporate Services and Group WongPartnership LLP, one of the Prior to joining the Manager, General Counsel of the Sponsor, leading law firms in Singapore. She Mr Handaja was the Associate Director where he oversees the administration, started her career as a litigation lawyer for the Sponsor’s Asset Management communications, human resources with Tan Kok Quan Partnership. team in China. His previous work functions as well as all legal, compliance experience was at organisations and corporate secretarial matters for Ms See holds an LL.B. (Honours) from including Accenture, TD Waterhouse the Sponsor across all business units the National University of Singapore, and State Street. and countries. and is admitted to the Singapore Bar.

Mr Handaja holds a Bachelor of Prior to joining the Sponsor, Mr Wan was Economics from the Macquarie the Group General Counsel - Asia for University as well as a Master of Infineon for seven years, where he was a Commerce from the University key member of Infineon’s management of New South Wales. team covering the Asia Pacific and Japan regions. He started his career as a litigation lawyer with one of the oldest law firms in Singapore, Wee Swee Teow & Co., and was subsequently with the Corporate & Commercial/Private Equity practice group of Baker & McKenzie in Singapore and Sydney. Annual Report 2015/2016 67 Property Management Team (Overseas) OVERVIEW

1 Ms Sandra Cheng 4 Mr Johnny Kok 6 Mr Paul Wong General Manager Head, Operations Head, Ice Rink

2 Mr Michael Wu 5 Ms Carol Chan 7 Mr Simon Lam STRATEGY Head, Property Management & Head, Marketing & Promotions Head, Finance Technical Services

3 Ms Vivian Lau Head, Lease Management & Tenant Relations PERFORMANCE GOVERNAN

4

6 7 C E

5 & Su s tainability

3 FINANCIA

2

1 L S & O thers 68 Mapletree Greater China Commercial Trust

Property Management Team (Overseas)

1 Ms Sally Li Manager, Finance

2 Ms Sylvia Shang Manager, Property Management

2 3 Mr Leo Liu Manager, Property Management & 3 1 Technical Services

4 Ms Jie Xiaoxi Assistant Manager, Leasing (not in picture)

7

6 5

5 Ms Sandy Chen Manager, Finance

6 Ms Rachel Guo Manager, Leasing

7 Mr Jeffrey Xu Manager, Property Management Annual Report 2015/2016 69 Risk Management OVERVIEW Risk Management is integral to the Manager’s business strategy of delivering sustainable and growing returns. In order to safeguard and create value for Unitholders, the Manager proactively manages risks and embeds the risk management process as part of the planning and decision making processes. STRATEGY PERFORMANCE

RIsk Risk Appetite, STrategy Tolerance, Attitudes and Philosophy

Risk Reporting RIsk GOVERNAN Structures, Roles GOVERNANCE and Responsibilities

1 RISK C E

IDENTIFICATION & Su s

5 2 tainability RISK RISK REPORTING RIsk ASSESSMENT MANAGEMENT Risk Analysis PROCESS 4 Risk Evaluation RISK MONITORING FINANCIA 3 Risk RISK Management TREATMENT Process L S & O Strategic external operational thers financial compliance Information Technology Key Risks

Internal Audit Key Risk Indicators Delegation of Authority

Risk Standard Operating Procedures Control Self-Assessment Training Whistleblowing Assurance

STRONG OVERSIGHT statements, which set out the nature guide and challenge Management, and AND GOVERNANCE and extent of risks it is willing to take is supported by the Sponsor’s Risk The Board of Directors (“Board”) is in achieving the Manager’s business Management (“RM”) department. responsible for determining the overall objectives. The Board is assisted risk strategy and risk governance, and by the Audit and Risk Committee At the Manager, risk management ensuring that the Manager implements (“AC”) who provides oversight of risk has top-down oversight and bottom- sound risk management and internal management. The AC comprises up involvement from all employees. control practices. The Board also independent directors, whose collective This ensures a risk approach that is approves the risk appetite and tolerance experience and knowledge serve to aligned with its business objectives and 70 Mapletree Greater China Commercial Trust

Risk Management

The information is maintained in a risk register that is reviewed and updated regularly. The key risks identified include but are not limited to:

Strategic Risks MGCCT’s portfolio is subject to real estate market risks such as rental rate and occupancy volatilities in Hong Kong and China, and country specific factors including competition, supply, demand and local regulations. Such risks are quantified, aggregated and monitored for existing assets and prospective acquisitions. Significant risk profile changes or emerging trends are reported for assessment and/or action.

The risks arising from investment activities are managed through a rigorous and disciplined investment approach, particularly in the area of asset evaluation and pricing. All Adopting safety practices at Festival Walk. acquisitions are aligned with MGCCT’s investment strategy to enhance returns to Unitholders and improve strategies for MGCCT, and integrated asset cash flows as they occur. future income and capital growth. with operational processes for To further complement the VaR Sensitivity analysis is performed for effectiveness and accountability. methodology, other risks such as each acquisition on all key project refinancing and tenant-related risks variables to test the robustness of the The Manager’s Enterprise Risk are also assessed, monitored and assumptions used. Due diligence is Management (“ERM”) framework is measured as part of the framework also conducted for each proposal. dynamic and evolves with the business. where feasible. The Sponsor’s RM department Significant acquisitions are further works closely with the Manager to With the VaR methodology, risks are subject to independent review by the monitor, review and enhance the risk measured consistently across the Sponsor’s RM department. All findings management system, with the guidance portfolio, enabling the Manager to by the Sponsor’s RM department are and direction of the AC and the Board. quantify the benefits that arise from included in the investment proposals A control self-assessment (“CSA”) diversification across the portfolio and that are submitted to the Board or framework further reinforces risk to assess risk by asset, risk type or Management committee for approval, awareness by fostering accountability, country. Recognising the limitations subject to their rigorous scrutiny. control and risk ownership. of any statistically-based system that relies on historical data, MGCCT’s On receiving approval from the ROBUST MEASUREMENT portfolio is subject to stress tests and Board or Management committee, AND ANALYSIS scenario analysis to ensure that the investment proposals are then The Manager’s risk measurement business remains resilient in the event submitted to the Trustee, who is framework is based on Value-at- of unexpected market shocks. the final approving authority for all Risk (“VaR”), a methodology which investment decisions. measures the volatilities of market and RISK IDENTIFICATION property risk drivers such as rental AND ASSESSMENT The Trustee also monitors the rates, occupancy rates, capital values, The Manager also identifies key risks, compliance of the Manager’s interest rates and foreign exchange assesses their likelihood and impact executed investment transactions with rates. It takes into consideration on the business, and establishes the restrictions and requirements of changes in market environment and corresponding mitigating controls. the Listing Manual of the Singapore Annual Report 2015/2016 71 OVERVIEW Exchange Securities Trading Limited, tenant credit assessment during the the Manager monitors and mitigates Monetary Authority of Singapore’s investment stage prior to acquisition. bank concentration risks by having a (“MAS”) Property Funds Appendix and For new and sizeable leases, credit well-diversified funding base. The limit the provisions in the Trust Deed. assessments of prospective tenants on aggregate leverage ratio is observed are undertaken prior to signing of and monitored to ensure compliance with Appendix 6 of the Code on External Risks lease agreements. On an ongoing STRATEGY To mitigate country risks such as basis, tenant credit is closely Collective Investment Schemes economic uncertainties or political monitored by the Manager’s asset issued by the MAS. turbulence in countries where it management team and arrears operates, the Manager conducts are managed by the Manager’s Credit Compliance Risks rigorous country and market research Control Committee which meets MGCCT is subject to applicable laws and monitors the economic and monthly to review debtor balances. and regulations of various jurisdictions PERFORMANCE political developments closely. To further mitigate risks, security in which it operates. Non-compliance deposits in the form of cash or may result in litigation, penalties, fines Operational Risks banker’s guarantees are collected or revocation of business licenses. Comprehensive operating, reporting from prospective tenants prior to The Manager identifies applicable and monitoring guidelines enable commencement of leases. laws and regulatory obligations and the Manager to manage day-to-day embeds compliance in day-to-day activities and mitigate operational Financial Risks business processes. GOVERNAN risks. To ensure relevance, the Financial market risks and capital Manager regularly reviews its structure are closely monitored and Information Technology Standard Operating Procedures actively managed by the Manager, and (“IT”) Risks

(“SOPs”) and benchmarks them reported to the Board on a quarterly Any system downtime or breach C E against industry practices where basis. At the portfolio level, the risk in security may have an adverse & Su appropriate. Compliance with SOPs is impact of currency and interest rate impact on the integrity, accuracy s

assessed under the CSA framework volatilities is quantified, monitored and completeness of data and tainability and reinforced through training of and reported quarterly using the VaR information. The Manager has in employees and regular reviews by the methodology. Refinancing risk is also place comprehensive policies and Sponsor’s Internal Audit Department. quantified, taking into account the procedures governing information concentration of the loan maturity availability, control and governance, Loss of key management personnel profile and credit spread volatility. and data security. In addition, an IT and identified talents can cause disaster recovery plan is in place and disruptions to the Manager’s business MGCCT hedges its portfolio exposure tested annually to ensure business FINANCIA operations and hinder the achievement to interest rate volatility arising from recovery objectives are met. of its business objectives. The its floating rate borrowings by way of

Manager has put in place succession interest rate swaps. RIGOROUS MONITORING L S & O planning, talent management and AND CONTROL

competitive compensation and Where feasible, after taking into The Manager has developed internal thers benefits plans to reward and retain account cost, tax and other relevant key risk indicators that serve as an performing personnel. considerations, the Manager will early-warning system to Management borrow in the same currency as the by highlighting risks that have escalated To deal with catastrophic events underlying assets to provide some beyond agreed tolerance levels. such as terrorism and natural natural hedge. To mitigate foreign Management has also established disasters, the Manager has put in exchange risks and to provide required actions to be taken when place and tested a comprehensive investors with a degree of income risk thresholds are breached. business continuity plan to enable it stability, a large proportion of rental to resume operations with minimal income received from overseas assets Every quarter, the Sponsor’s RM disruption and loss. MGCCT’s is hedged using forward contracts and department presents to the Board properties are insured in accordance secured in Singapore Dollar terms. and AC a comprehensive report, with industry norms in their respective highlighting key risk exposures, jurisdictions and benchmarked The Manager also actively monitors portfolio risk profile, results of stress against those in Singapore. MGCCT’s cash flow position and testing scenarios and status of key risk requirements to ensure sufficient liquid indicators. The Board and AC are also Credit risks are mitigated from the reserves to fund operations and meet kept abreast of any material changes to outset by conducting thorough short-term obligations. In addition, MGCCT’s risk profiles and activities. 72 Mapletree Greater China Commercial Trust Investor Relations

The Manager is committed to open and proactive communications with the Unitholders and the broader investment community. Investors are provided with timely and equal access to material information about MGCCT (including its strategies, operations, financial performance, governance and key developments) so that Close engagement between MGCCT’s they can make informed investment decisions. management and analysts at Mapletree REITs’ year-end networking event for analysts.

Proactive Investor Unitholders’ Profile1 Institutional Unitholders by Region1 Outreach Quarterly post-results briefings or teleconference calls are held to update analysts on MGCCT’s financial results, operational performance and outlook. Half-year and full-year result presentations are broadcast “live” through audio webcast on MGCCT’s corporate website (www. mapletreegreaterchinacommercialtrust. com) and webcast participants can send questions online to be addressed by Management. % % Institutional Investors 41 Asia (excluding Singapore) 39 All the latest announcements and Mapletree & Related Parties 35 Singapore 20 news are promptly released to Private Investors 21 North America 17 SGX-ST and published on MGCCT’s Others2 3 United Kingdom (UK) 14 dedicated website, which contains a Europe (excluding UK) 10 comprehensive source of pertinent information for the investment 1 Approximate figures based on MGCCT’s share register analysis of approximately 25,700 Unitholders as of 11 March 2016. community. In addition to a dedicated 2 Others include corporates, non-profit organisations, custodians and nominees. email address where investors can post questions, an email alert service is also available so that properties in Greater China. In Board of Directors and senior registered participants can receive FY15/16, MGCCT met with close management. To connect with prompt updates on MGCCT’s to 140 investors from countries more retail investors, MGCCT also announcements. including Singapore, Australia, participated in the REITs Symposium China, Hong Kong, Japan, Malaysia, jointly organised by ShareInvestor The Manager engages investors Thailand, the United Kingdom and and the REIT Association of on a regular basis to update them the USA. Singapore (REITAS) during the year. on MGCCT’s latest developments, provide better understanding of MGCCT convened its second In recognition of the Manager’s high strategic issues and address any Annual General Meeting (AGM) on standard of disclosure and reporting, market concerns. Property tours or 30 July 2015. Well-attended by about MGCCT was awarded Silver for its site visits are also arranged upon 315 Unitholders, proxy holders and inaugural annual report in the REITs request to familiarise investors observers, it provided them the and Business Trusts category at the with the operations of MGCCT’s opportunity to interact with the Singapore Corporate Awards. Annual Report 2015/2016 73 OVERVIEW

Research Coverage (As of 9 May 2016) Bank of America Merrill Lynch CIMB Securities Citi Research

CLSA Singapore STRATEGY DBS Group Research Goldman Sachs Macquarie Securities OCBC Investment Research The Hong Kong and Shanghai

Banking Corporation PERFORMANCE MGCCT’s booth (shared with other Mapletree REITs) at the REITs Symposium, jointly organised by ShareInvestor and REITAS, attracted many retail investors. Constituent of Key Indices Bloomberg Asia Real Estate Investment Financial Calendar Trust Index FTSE EPRA/NAREIT Global REIT Index Event FY15/16 FTSE Straits Times All-Share Index 1st Quarter Results Announcement 31 July 2015 FTSE Straits Times Mid-Cap Index GOVERNAN 2nd Quarter and Half-year Results Announcement 27 October 2015 FTSE Straits Times REIT Index 1 Books Closure Date for First Distribution 4 November 2015 GPR General Index Payment of First Distribution to Unitholders 26 November 2015 MSCI Pacific ex Japan SMID Cap Index 3rd Quarter Results Announcement 29 January 2016 MSCI Singapore Small Cap Index th C 4 Quarter and Full-year Results Announcement 27 April 2016 MSCI South East Asia SMID Cap E & Su Books Closure Date for Second Distribution 6 May 2016 SGX S-REIT Index Payment of Second Distribution to Unitholders 27 May 2016 SGX S-REIT 20 Index s tainability 1 MGCCT’s distribution to Unitholders is on a semi-annual basis. S&P Asia Pacific BMI Index S&P Developed Property Investor Relations Calendar S&P Developed REIT Index S&P Dev exUS MdSmCp USD Date Event S&P Global ExUS Property USD 2015 S&P Global REIT Index USD

24 April 4Q FY14/15 Analysts’ Briefing and Audio Webcast, Singapore S&P Singapore BMI FINANCIA 28 April 4Q FY14/15 Post-results Luncheon and Non-deal Roadshow hosted by DBS, Singapore Investor Relations Contact 23 May REITs Symposium, Suntec City, Singapore Ms Elizabeth Loo 15 June Analysts’ Conference Call on Acquisition of Sandhill Plaza L Vice President, Investor Relations S & O 25–26 June Citi Asia Pacific Property Conference, Hong Kong T: +65 6377 6705 nd 30 July 2 Annual General Meeting, Singapore F: +65 6273 2753 thers 3 August 1Q FY15/16 Analysts’ Conference Call Email: enquiries [email protected] 4 August 1Q FY15/16 Post-results Luncheon and Non-deal Roadshow hosted by Goldman Sachs, Singapore Unitholder Depository 1 September Citi-REITAS Singapore REIT & Sponsors Forum, Singapore For depository-related matters such as 7-8 September Daiwa Pan Asia REIT Day, Tokyo change of details pertaining to Unitholders’ 28 October 2Q FY15/16 Analysts’ Briefing and Audio Webcast, Hong Kong investment records, please contact: 28 October 2Q FY15/16 Post-results Luncheon and Non-deal Roadshow hosted The Central Depository (Pte) Limited by HSBC, Hong Kong 11 North Buona Vista Drive 17 November Morgan Stanley Annual Asia Pacific Summit, Singapore #06-07 The Metropolis Tower 2 2016 Singapore 138589 1 February 3Q FY15/16 Analysts’ Conference Call T: +65 6236 8888 4 February 3Q FY15/16 Post-results Luncheon hosted by Macquarie, Singapore F: +65 6535 6994 Email: [email protected] 18-19 February Non-deal Roadshow hosted by Macquarie, Hong Kong Website: www.sgx.com/cdp 1 March Non-deal Roadshow hosted by DBS, Kuala Lumpur 9-10 March Non-deal Roadshow hosted by HSBC, Beijing and Shanghai For Substantial Unitholders: 28 April 4Q FY15/16 Analysts’ Briefing and Audio Webcast, Singapore For changes in percentage unitholding level, 29 April 4Q FY15/16 Post-results Luncheon and Non-deal Roadshow hosted email: MGCCT [email protected] by DBS, Singapore 74 Mapletree Greater China Commercial Trust Corporate Governance Report

The Manager of Mapletree Greater The Manager is committed to The following sets out the composition China Commercial Trust (“MGCCT”) is complying with the substance and of the Board: responsible for the strategic direction and spirit of the Code of Corporate management of the assets and liabilities of Governance 2012 (the “Code”). Mr Frank Wong Kwong Shing, MGCCT and its subsidiaries (collectively, The following describes the main Chairman and Independent the “Group”). As a REIT manager, the corporate governance policies and Non-Executive Director Manager is licensed by the Monetary practices of the Manager with reference Mr Kevin Kwok Khien, Chairman of Authority of Singapore (the “MAS”) and to the Code and, where there are the Audit and Risk Committee and holds a Capital Markets Services Licence any deviations from the principles Independent Non-Executive Director for REIT management (“CMS Licence”). and guidelines of the Code, provides Mr Lok Vi Ming, Member of the Audit explanations for such deviations. and Risk Committee, Chairman of The Manager discharges its responsibility the Nominating and Remuneration for the benefit of MGCCT and its (A) BOARD MATTERS Committee and Independent unitholders (“Unitholders”), in accordance Non-Executive Director with the applicable laws and regulations The Board’s Conduct of Affairs Mr Michael Kok Pak Kuan, Member as well as the trust deed constituting Principle 1: Effective Board of the Audit and Risk Committee and MGCCT (the “Trust Deed”). To this end, Independent Non-Executive Director the Manager sets the strategic direction Our Policy and Practices Mr Hiew Yoon Khong, of the Group and gives recommendations The Manager adopts the principle Member of the Nominating and to DBS Trustee Limited, in its capacity that an effective Board of Directors Remuneration Committee and as trustee of MGCCT (the “Trustee”), (the “Board”) for the Manager is one Non-Executive Director on the acquisition, divestment and which is constituted with the right Mr Chua Tiow Chye, enhancement of assets of the Group. core competencies and diversity of Non-Executive Director experience, so that the collective Ms Cindy Chow Pei Pei, Executive The Manager’s roles and responsibilities wisdom of the Board can give Director and Chief Executive Officer include: guidance and provide insights as well as strategic thinking to the The Board comprises business leaders carrying out and conducting the management team of the Manager and distinguished professionals with Group’s business in a proper and (“Management”). banking, legal, retail, real estate, efficient manner and conducting all strategic planning, management and transactions with or for the Group on The key roles of the Board are to: accounting experience. an arm’s length basis and on normal commercial terms; guide the corporate strategy and The diverse professional backgrounds preparing annual budget proposal with direction of the Manager; of the Directors enable Management forecast on gross revenue, property ensure that the senior management to benefit from their external, varied expenditure, capital expenditure of the Manager discharges business and objective perspectives on issues and providing explanations on major leadership and demonstrates the brought before the Board for discussion variances against prior year’s actual highest quality of management with and deliberation. Each Director is results and written commentaries integrity and enterprise; and appointed on the strength of his or on key issues and any other relevant oversee the proper conduct of her calibre, experience, stature, and assumptions. The purposes of such the Manager. potential to give proper guidance to proposals and analyses are to chart Management for the business of the the Group’s business for the year The positions of Chairman and Group. The profiles of the Directors ahead and to explain the performance Chief Executive Officer (“CEO”) are set out in pages 60 to 63 of this of MGCCT’s properties compared to are held by two separate persons Annual Report. The Board is of the view the prior year; and in order to maintain effective oversight. that the present principal directorships ensuring compliance with applicable The Board has also established the included in their individual profiles laws and regulations, including the Audit and Risk Committee (the “AC”) are sufficient in informing Unitholders Securities and Futures Act (Chapter and the Nominating and Remuneration of their principal commitments. The 289 of Singapore), the Listing Manual Committee (the “NRC”), each of which Board meets regularly, at least once of Singapore Exchange Securities operates under delegated authority every quarter, to review the business Trading Limited (the “SGX-ST”), from the Board, to assist the Board in performance and outlook of the Group the Code on Collective Investment discharging its oversight function. and deliberate on business strategy, Schemes, the Singapore Code on including any significant acquisitions, Takeovers and Mergers, the Trust The Board comprises seven Directors, disposals, fund-raisings and Deed, the conditions of the CMS of whom six are Non-Executive Directors development projects undertaken Licence and any tax rulings. and four are Independent Directors. by the Group. Annual Report 2015/2016 75 OVERVIEW The meeting attendance of the Board, the AC and the NRC for FY15/16 is as follows:

Nominating and Audit and Remuneration Board Risk Committee Committee

Number of meetings held in FY15/16 5 5 1 STRATEGY Board Members Membership Mr Frank Wong Kwong Shing Chairman and Independent 5 N.A.(1) N.A.(1) (Appointed on 7 February 2013) Non-Executive Director (Last reappointment on 30 July 2014) Mr Kevin Kwok Khien Chairman of the Audit and Risk Committee and 5 5 N.A.(1) (Appointed on 7 February 2013) Independent Non-Executive Director PERFORMANCE (Last reappointment on 30 July 2014) Mr Lok Vi Ming Member of the Audit and Risk Committee, Chairman 5 5 1 (Appointed on 7 February 2013) of the Nominating and Remuneration Committee and (Last reappointment on 30 July 2014) Independent Non-Executive Director Mr Michael Kok Pak Kuan Member of the Audit and Risk Committee and 5 5 N.A.(1) (Appointed on 7 February 2013) Independent Non-Executive Director (Last reappointment on 30 July 2014) (3) (1) Mrs Ow Foong Pheng Member of the Nominating and Remuneration 5 N.A. 1 GOVERNAN (Appointed on 7 February 2013) Committee and Independent Non-Executive Director (Last reappointment on 30 July 2014) Mr Hiew Yoon Khong Member of the Nominating and Remuneration 5 N.A.(1) 1 (Appointed on 30 November 2012) Committee and Non-Executive Director

(Last reappointment on 28 September 2015) C (2) (1) E Mr Chua Tiow Chye Non-Executive Director 5 5 N.A. & Su (Appointed on 30 November 2012) (Last reappointment on 28 September 2015) s Ms Cindy Chow Pei Pei Executive Director and Chief Executive Officer 5 5 (2) 1(2) tainability (Appointed on 30 November 2012) (Last reappointment on 28 September 2015)

Notes: (1) N.A. means not applicable. (2) Attendance was by invitation. (3) Mrs Ow Foong Pheng has resigned as an Independent Non-Executive Director as well as a Member of the Nominating and Remuneration Committee with effect from 20 April 2016. FINANCIA

The Board has also approved a set derivative contracts above Board Composition and Guidance of delegations of authority which sets Board-prescribed limits. Principle 2: Strong and Independent out approval limits for investments and L

Element on the Board S & O divestments, development, operational Each Director is given a formal letter

and capital expenditures and treasury of appointment setting out his or Our Policy and Practices thers activities to be undertaken by the Group. her duties and obligations under The Manager adopts the principle Approval sub-limits are also provided at the relevant laws and regulations that at least one-third of its Directors various management levels to facilitate governing the Manager and the Group. shall be independent if the Chairman operational efficiency as well as provide The Manager also has in place an is an independent director and at a system of checks and balances. orientation programme to brief new least half of its Directors shall be Directors on the Group’s business, independent if the Chairman is not The Board’s approval is required for strategic directions, risk management an independent director, and the material transactions to be undertaken policies, the regulatory environment majority of its Directors shall be by the Group, including the following: in which the Group operates and the non-executive. The Manager believes governance practices of the Group and a board composition with a strong equity fund-raising; the Manager. The Board is updated on and independent element will allow acquisition, development and any material change to relevant laws, the Directors to engage in robust disposal of properties above regulations and accounting standards deliberations with Management and Board-prescribed limits; by way of briefings by professionals or provide external, diverse and objective overall project budget variance and by updates issued by Management. insights on issues brought before the ad hoc development budget above Individual Directors are also afforded Board for discussion and deliberation. Board-prescribed limits; opportunities for continuing education Further, such a board composition, debt fund-raising above in relevant areas, so as to enhance their and the separation of the roles of the Board-prescribed limits; and performance as directors. Chairman and the CEO, provides 76 Mapletree Greater China Commercial Trust

Corporate Governance Report

oversight to ensure that Management charges were agreed on an arm’s length ensure good governance and to remain discharges its roles and responsibilities basis and on normal commercial terms. relevant to the changing needs of the effectively and with integrity. Manager and the Group’s business. Based on a review of the relationships For FY15/16, each of the Independent between the Directors and the Group The Board established the NRC in Directors had carried out an and declaration of independence by January 2016 and prior to that, the assessment on whether there were the Independent Directors, the Board functions of a nominating committee any relationships or circumstances considers the following Directors were undertaken by the Board. which may impact his or her to be independent: The NRC initially comprised three independent status. Accordingly, non-executive Directors, being each of the Independent Directors Mr Frank Wong Kwong Shing; Mr Lok Vi Ming, Mrs Ow Foong Pheng had either made a negative declaration Mr Kevin Kwok Khien; and Mr Hiew Yoon Khong, all non- or disclosed such relationships or Mr Lok Vi Ming; and executive and the majority of whom circumstances as applicable. The Mr Michael Kok Pak Kuan. (including the Chairman) independent. declarations or disclosures made Mr Lok Vi Ming is the Chairman of by each Independent Director had In view of the above, more than the NRC and also an Independent been reviewed by the NRC. half of the Board comprises Non-Executive Director of the Manager. Independent Directors. As Mrs Ow Foong Pheng resigned The Board had considered the as an Independent Non-Executive Independent Director status of Chairman and Chief Director and a Member of the NRC Mr Michael Kok Pak Kuan (who is a Executive Officer on 20 April 2016, the NRC presently Non-Executive Director of The Dairy Principle 3: Clear Division comprises two members. The Board Farm International Holdings Limited of Responsibilities is cognisant of the guidelines of the (“Dairy Farm”)). Although the amount Code regarding the composition of of lease rental and other charges Our Policy and Practices the nominating committee and intends paid by Mannings, which is part of The Manager adopts the principle to appoint another member to the the Dairy Farm group, to MGCCT of clear separation of the roles and NRC as soon as possible to comply in FY15/16 for leases of MGCCT’s responsibilities between the Chairman with such guidelines. premises exceeded S$200,000, of the Board and the CEO of the the Board takes the view that his Manager. The Chairman guides the The NRC has written terms of Independent Director status is not Board in constructive debates on the reference setting out its scope and affected as these rentals and charges Group’s strategic direction, management authority in performing the functions were agreed on arm’s length basis of its assets and governance matters. of a nominating committee, which and did not represent a significant He is an Independent Non-Executive include assisting the Board in portion of MGCCT’s revenue. Director, and is free to act objectively matters relating to: in the best interests of the Manager The Board had also considered and Unitholders. the appointment and the Independent Director status of re-appointment of Board and Mrs Ow Foong Pheng (who is a The Chairman and the CEO are not committee members; Non-Executive Director of DBS Bank related to each other. The CEO is the appointment of the Executive Ltd. and DBS Group Holdings Ltd) responsible for the running of the Director and CEO and the for FY5/16, prior to her resignation on Group’s business operations. She framework for the appointment 20 April 2016. Although the amounts has full executive responsibilities of senior management executives paid by MGCCT to the Trustee and over the business and operational of the Manager, as well as the DBS Bank Limited as dealer for the decisions of the Group. The CEO is succession plan and framework MTN bond issuances exceeded also responsible for ensuring the for the Executive Director and S$200,000 in FY15/16 and although Group’s and the Manager’s compliance CEO and senior management the amounts received by MGCCT with the applicable laws and regulations executives of the Manager; from DBS group in FY15/16 for leases in its day-to-day operations. training and professional of MGCCT’s premises exceeded development programmes S$200,000, the Board takes the view Board Membership for the Board; that her Independent Director status Principle 4: Formal and Transparent the process for evaluating is not affected as (a) the Trustee Process for Appointments Board performance; and arrangement was entered into the determination, on an before Mrs Ow was appointed as Our Policy and Practices annual basis and as and when a Director of the Manager and (b) The Manager adopts the principle that circumstances require, of the the fees as well as rental and other Board renewal is an ongoing process to independent status of a Director, Annual Report 2015/2016 77 OVERVIEW bearing in mind the relevant Board. From January 2016, with Management is required to provide guidelines of the Code as well as the establishment of the NRC, adequate and timely information to any other applicable regulations such appointments and resignations the Board, which includes matters and guidelines and salient factors. of Board members must first be requiring the Board’s decision as well approved by the NRC. As a principle as ongoing reports relating to the

The composition of the Board is of good corporate governance, operational and financial performance STRATEGY determined using the following all Board members are required of the Group. Management is also principles: to submit themselves for re-nomination required to furnish any additional and re-election at regular intervals. information requested by the Board in the Chairman of the Board should The CEO, as a Board member, is also a timely manner in order for the Board be a non-executive director of subject to retirement and re-election. to make informed decisions. the Manager; PERFORMANCE the Board should comprise Board Performance The Board has separate and directors with a broad range of Principle 5: Formal Assessment of independent access to Management commercial experience including the Effectiveness of the Board and the Company Secretary. expertise in funds management, law, finance, audit, accounting and Our Policy and Practices The Company Secretary attends real estate; and The Manager adopts the principle that to the administration of corporate

at least one-third of the Board the Board’s performance is ultimately secretarial matters and advises the GOVERNAN should comprise independent reflected in the performance of the Board on governance matters. The directors if the Chairman is an Manager and the Group. Company Secretary also attends all independent director and at Board and Board committee meetings

least half of the Board should To assess the performance of the and provides assistance to the C E

comprise independent directors Board and the Board committees, Chairman in ensuring adherence & Su if the Chairman is not an the Manager conducts confidential to Board procedures. s

independent director. board effectiveness surveys on a tainability bi-yearly basis. The last survey of The Board takes independent The Manager does not, as a matter of the Board and the AC was undertaken professional advice as and when policy, limit the maximum number of in April 2014 (but not for NRC as it necessary to enable it and/or the listed company board representations was only established in January Independent Directors to discharge its Board members may hold as long 2016), with the findings evaluated their responsibilities effectively. as each of the Board members is by the Board in July 2014. Based The AC meets the external and able to commit his or her time and on those findings, the Board was internal auditors separately at least FINANCIA attention to the affairs of the Group, of the view that it had met its once a year, without the presence including attending Board and Board performance objectives. of Management. committee meetings and contributing L S & O constructively to the management The Manager has started conducting (B) REMUNERATION of the Manager and the Group. board effectiveness surveys for the MATTERS thers The Manager believes that each Board and the AC in 2016, with Director is best placed to decide the assistance from the NRC. To Procedures for Developing whether he or she has sufficient this end, the NRC will assist the Remuneration Policies capacity to discharge his or her duties Board in (amongst other things) the Principle 7: Formal and and responsibilities as Director in the assessment of the effectiveness of the Transparent Procedure for best interests of the Manager and Board, by reviewing the performance Fixing the Remuneration Unitholders. Taking into account the evaluation process and making of Directors meeting attendance records of the recommendations to the Board. Directors in FY15/16 as well as the Level and Mix of Remuneration contribution and performance of Access to Information Principle 8: Appropriate Level each individual Director at such Principle 6: Complete, Adequate of Remuneration meetings, the Board is satisfied and Timely Access to Information that all the Directors have been Disclosure on Remuneration able to carry out their duties as Our Policy and Practices Principle 9: Clear Disclosure Director notwithstanding their The Manager adopts the principle of Remuneration Matters principal commitments. that the Board shall be provided with timely and complete information prior Our Policy and Practices All appointments and resignations of to Board meetings as well as when The Manager adopts the principle Board members are approved by the the need arises. that remuneration matters should 78 Mapletree Greater China Commercial Trust

Corporate Governance Report

be sufficiently structured and As the NRC was established recently All the members of the Sponsor’s benchmarked with good market in the fourth quarter of FY15/16, for ERCC are independent of Management. practices to attract qualified talent to FY15/16, the Manager, as a subsidiary During FY15/16, the Sponsor’s ERCC grow and manage its business. of Mapletree Investments Pte Ltd who is oversaw executive compensation and the sponsor of MGCCT (the “Sponsor”), development of the management bench The Manager adopts the principle took reference from the remuneration strength, so as to build a capable and that remuneration for the Board and policies and practices of the Sponsor dedicated management team and give senior management should be viewed in determining the remuneration of the guidance on progressive policies which in totality. The remuneration structure Manager’s Board and key executives, could attract, motivate and retain a pool supports the continuous development and the Sponsor’s Executive Resources of talented executives for the present of the management bench strength to and Compensation Committee and future growth of the Manager. ensure robust talent management and (“Sponsor’s ERCC”) served the succession planning. crucial role of helping to ensure that Specifically, up to and for FY15/16, the Manager could recruit and retain the Sponsor’s ERCC, with the In January 2016, the Board established the best talent to drive its business assistance of compensation an NRC which initially comprised forward. In deciding to refer to the consultants where necessary: three non-executive Directors, being Sponsor’s remuneration policies and Mr Lok Vi Ming, Mrs Ow Foong Pheng practices which are overseen by established compensation policies and Mr Hiew Yoon Khong, all Sponsor’s ERCC, the Manager had for key executives; non-executive and the majority of carefully considered the suitability approved salary reviews, bonuses whom (including the Chairman) of such policies and practices, and and incentives for key executives; independent. Mr Lok Vi Ming is the deemed them to be appropriate taking approved key appointments and Chairman of the NRC and also an into account the circumstances of the reviewed succession plans for key Independent Director of the Manager. Manager and the Group as well as the positions; and As Mrs Ow Foong Pheng resigned benefits of tapping into the Sponsor’s oversaw the development of as an Independent Non-Executive compensation framework. key executives and younger Director and a Member of the NRC talented executives. on 20 April 2016, the NRC presently From FY16/17 onwards, the NRC, comprises two members. The Board in performing the functions of The key objectives and features of the is cognisant of the guidelines of the a remuneration committee, will Manager’s policy on the remuneration of Code regarding the composition of the support the Board in the Manager’s its Directors are as follows: remuneration committee and intends remuneration matters in accordance to appoint another member to the with the NRC’s written terms of the level of directors’ fees should be NRC as soon as possible to comply reference. In this regard and following appropriate (but not excessive) to with such guidelines. the new directions and guidelines attract and motivate the Directors from the MAS on the remuneration of to provide good stewardship of the The NRC has written terms of directors and key executive officers Manager and the Group; reference setting out its scope and of REIT managers, the Board with the directors’ fees are established authority in performing the functions assistance of the NRC is in the midst of annually and subject to the approval of a remuneration committee, which reviewing the remuneration objectives, of the Manager’s shareholder; include assisting the Board in matters policies and procedures applicable to each Director is paid a basic fee relating to: the Manager, with a view to aligning and, in addition, to ensure that each them with the substance and spirit of Director’s fees are commensurate the framework of remuneration for such directions and guidelines from with his or her responsibilities the Directors, Executive Director the MAS. and time spent, Directors who and CEO and senior management perform additional services through executives of the Manager, including The members of the Sponsor’s the Board committees are paid all option plans, stock plans and ERCC are: additional fees for such services; the like as well as the performance Non-Executive Directors who are hurdles of such plans; Mr Edmund Cheng Wai Wing employees of the Sponsor do not the specific remuneration package (Chairman); receive any director’s fees in their for the Executive Director and CEO Mr Paul Ma Kah Woh capacity as Directors, and the CEO of the Manager; and (Member); and also does not receive any director’s the termination payment, gratuities, Ms Chan Wai Ching, fees in her capacity as a Director; severance payment and other Senior Managing Director, and similar payments to the Executive Temasek International Pte. Ltd. no Director is involved in deciding his Director and CEO of the Manager. (Co-opted Member). or her own remuneration. Annual Report 2015/2016 79 OVERVIEW The key objectives and features of the sustainability of the Manager and conditions of service, and the review of Manager’s policy on the remuneration of the Group. her performance. However, the Board its executives are as follows: reviews the CEO’s performance and Directors’ fees are paid entirely in cash. shares with the CEO their views of her the level and structure of executive In respect of the CEO’s remuneration, performance. In accordance with the

remuneration should be competitive her compensation comprises a directions and guidelines from the MAS STRATEGY (but not excessive) to attract, salary, allowances, bonuses and on the remuneration of key executive motivate and retain a pool of talented share appreciation awards from the officers of REIT managers, the Board executives for the present and future Sponsor. The latter is conditional upon will, with the assistance of the NRC, growth of the Manager; and her meeting certain performance review the CEO’s specific remuneration executive remuneration should be targets. The CEO is not present package to ensure its compliance

performance-related with a view to during the discussions relating to her with the substance and spirit of such PERFORMANCE promoting the long-term success and own compensation and terms and directions and guidelines from the MAS.

The remuneration of the Board and the employees of the Manager is paid by the Manager, and not paid by MGCCT. The Manager has set out in the table below information on the fees paid to the Directors for FY15/16:

Board Members Membership Fees Paid for FY15/16 GOVERNAN

Mr Frank Wong Kwong Shing Chairman and Independent Non-Executive Director S$120,000.00 Mr Kevin Kwok Khien Chairman of the Audit and Risk Committee S$100,000.00 and Independent Non-Executive Director C

(1) E

Mr Lok Vi Ming Member of the Audit and Risk Committee, S$87,500.00 & Su Chairman of the Nominating and Remuneration Committee

and Independent Non-Executive Director s Mr Michael Kok Pak Kuan Member of the Audit and Risk Committee S$87,500.00 tainability and Independent Non-Executive Director Mrs Ow Foong Pheng Member of the Nominating and Remuneration Committee S$60,000.00(1) (2) and Independent Non-Executive Director Mr Hiew Yoon Khong Member of the Nominating and Remuneration Committee Nil(3) and Non-Executive Director

Mr Chua Tiow Chye Non-Executive Director Nil(3) FINANCIA Ms Cindy Chow Pei Pei Executive Director and Chief Executive Officer Nil(4)

Notes: (1) This excludes director’s fees for serving on the NRC. No such director’s fees were paid for FY15/16. L (2) The director’s fees payable to Mrs Ow Foong Pheng were paid to the Directorship & Consultancy Appointments Council. Mrs Ow Foong Pheng has resigned as an Independent Non-Executive S & O Director as well as a Member of the Nominating and Remuneration Committee with effect from 20 April 2016. (3)

Non-Executive Directors who are employees of the Sponsor do not receive any director’s fees in their capacity as Directors. thers (4) The CEO does not receive any director’s fees in her capacity as a Director.

The Manager is cognisant of the The Board had assessed and decided competitors. Given that the retention requirement in the “Notice to All against the disclosure of: (a) the of the Manager’s CEO and key Holders of a Capital Markets Services remuneration of the CEO and its top five management personnel is crucial Licence for Real Estate Investment executive officers on a named basis, to the continuity and stability of the Trust Management” to disclose: (a) whether in exact quantum or in bands Group’s business and operations, the remuneration of its CEO and each of S$250,000; and (b) the aggregate the Board is of the view that the loss individual Director on a named basis; remuneration paid to its top five key of talent at the Management level and (b) the remuneration of at least its management personnel, for the due to poaching may cause undue top five executive officers (other than following reasons: disruptions to the management of the CEO and executive officers who the Group’s business; are Directors), on a named basis, in the REIT management industry is remuneration matters for the CEO bands of S$250,000. The Manager is highly competitive and the pool and each of the executive officers also cognisant of the requirement of the of qualified candidates is limited, are highly confidential and sensitive Code to disclose in aggregate the total and such disclosure may give rise matters; and remuneration paid to its top five key to recruitment and talent retention the remuneration of the Manager’s management personnel (who are not issues for the Manager because of CEO and employees is paid by Directors or the CEO). the possibility of poaching by other the Manager. 80 Mapletree Greater China Commercial Trust

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In this regard, the Board is of the technology risks relevant to the derivative contracts above view that the non-disclosure of the Group’s business and operating Board-prescribed limits. remuneration of the CEO and its top environment. These systems provide five key executive officers whether reasonable but not absolute The Group’s procedures and on an individual or aggregate basis, assurance on the achievement of practices are regularly reviewed and would not prejudice the interests their intended internal control and revised where necessary to enhance of Unitholders. risk management objectives. controls and efficiency. The Group has implemented a Control Self There were no employees of the The key elements of the Group’s Assessment programme to promote Manager who were immediate family internal control and risk management accountability, control and risk members of a Director or the CEO of systems are as follows: ownership to cultivate a strong sense the Manager and whose remuneration of risk awareness and compliance exceeded S$50,000 during FY15/16. Operating Structure with internal controls within the Group. The Manager has a well-defined (C) ACCOUNTABILITY operating structure with clear lines of The Internal Audit function, which is AND AUDIT responsibility and delegated authority, outsourced to the Sponsor, reviews as well as reporting mechanisms to the Group’s compliance with the Accountability senior management and the Board. control procedures and policies Principle 10: Balanced and This structure includes certain established within the internal control Understandable Assessment functions, such as Human Resources, and risk management systems. The of the Company’s Performance, Information Systems & Technology, Internal Audit function is also involved Position and Prospects Internal Audit, Legal and Risk in the validation of the results from the Management, which are outsourced Control Self Assessment programme. Our Policy and Practices to the Sponsor. The Manager also The Manager adopts the principle conducts an annual review of such Whistle-blowing Policy that to build confidence among outsourced functions to ensure To reinforce a culture of good stakeholders, there is a need to deliver required performance standards business ethics and governance, sustainable value. are met. the Manager has a Whistle-blowing Policy to encourage the reporting, in The Manager complies with statutory Policies, Procedures and Practices good faith, of any suspected improper and regulatory requirements and Controls are detailed in formal conduct, including possible financial adopts best practices in the Group’s procedures and manuals. For irregularities, while protecting the business processes. The Manager example, the Board has approved whistle-blowers from reprisals. The AC also updates the Board on the Group’s a set of delegations of authority Chairman is notified of any reported performance and its business and which sets out approval limits for incidents involving the Group or the market outlook on a regular basis, investments and divestments, Manager, and if further investigations so as to enable the Board to make a development, operational and capital are warranted, the AC Chairman may balanced and informed assessment expenditures and treasury activities. direct that independent investigations of the Group’s performance, financial Approval sub-limits are also provided be conducted. The findings of such position and prospects. at various management levels to investigations are then provided to facilitate operational efficiency the AC for their deliberation and Risk Management and as well as provide a system of determination of the appropriate Internal Controls checks and balances. follow-up action to be taken. Principle 11: Sound System of Risk Management and Internal Controls The Board’s approval is required Risk Management for material transactions, including Risk management is an integral Our Policy and Practices the following: part of business management by The Manager adopts the principle that the Manager. In order to safeguard a sound system of internal controls and equity fund-raising; and create value for Unitholders, risk management is necessary for the acquisition, development and the Manager proactively manages Group’s business. disposal of properties above risks and incorporates the risk Board-prescribed limits; management process into the The Manager, working with the overall project budget variance and Manager’s planning and decision Sponsor, has established internal ad hoc development budget above making process. control and risk management Board-prescribed limits; systems that address key operational, debt fund-raising above The Risk Management function which financial, compliance and information Board-prescribed limits; and is outsourced to the Sponsor’s Risk Annual Report 2015/2016 81 OVERVIEW Management Department oversees preceding year and provides an updated proactively manages liquidity risk by the Enterprise Risk Management full year forecast. In addition, the Board ensuring that sufficient working capital (“ERM”) framework, which enables is provided with quarterly updates on lines and loan facilities are maintained the Manager to assess, mitigate key operational activities for the Group. The Manager’s capital and monitor key risks. The Risk of the Group. management strategy can be found

Management Department reports to on page 38 of this Annual Report. The STRATEGY the AC and the Board independently, A management representation Manager also has in place credit control on a quarterly basis, on key risk letter is provided by the Manager in procedures for managing tenant credit exposures, portfolio risk profile and connection with the preparation of the risk and monitoring of arrears collection. activities in respect of significant Group’s financial statements which risk matters. are presented to the AC and Board Internal Audit

quarterly. The representation letter The Internal Audit (“IA”) function, PERFORMANCE The risk management system is supported by declarations made which is outsourced to the Sponsor’s established by the Manager, which individually by the various Heads of Internal Audit Department, prepares a encompasses the ERM framework Department. Compliance checklists on risk-based audit plan annually to review and the risk management process, announcement of financial statements, the adequacy and effectiveness of the is dynamic and evolves with the which are required for submission Group’s system of internal controls and business. The Manager has identified to the SGX-ST, are reviewed and this audit plan is approved by the AC

key risks, assessed their likelihood confirmed by the Chief Financial Officer before execution. The IA Department GOVERNAN and impact on MGCCT’s business, (“CFO”) of the Manager. is also involved during the year in and established corresponding conducting ad hoc audits and reviews mitigating controls. The information The Group’s financial results are that may be requested by the AC or

is maintained in a risk register that is prepared in accordance with the Management on specific areas of C E reviewed and updated regularly. The Statement of Recommended Accounting concern. In doing so, the IA Department & Su Risk Management Department works Practice 7 “Reporting Framework obtains reasonable assurance that s

closely with the Manager to review and for Unit Trust” and are reported to business objectives for the process tainability enhance the risk management system Unitholders quarterly in accordance under review are being achieved and to be in line with market practices and with the requirements of the SGX-ST. key control mechanisms are in place. regulatory requirements. These results announcements provide analyses of significant variances in Upon completion of each review, The Manager’s policies and financial performance and commentary a formal report detailing the audit procedures relating to risk on the industry’s competitive conditions findings and the appropriate management can be found on pages in which the Group operates and any recommendations is issued to the FINANCIA 69 to 71 of this Annual Report. known factors or events that may affect AC. The IA Department monitors and the Group in the next reporting period reports on the timely implementation

Information Technology and the next twelve months. of the action plans to Management L S & O (“IT”) Controls and the AC on a quarterly basis.

As part of the Group’s risk management Detailed disclosure and analysis of the thers process, IT controls have been put in full year financial performance of the The external auditors provide an place and are periodically reviewed to Group can be found on pages 97 to 144 independent perspective on certain ensure that IT risks and cyber-security of this Annual Report. aspects of the internal financial threats are identified and mitigated. controls system arising from their In addition, as part of the Manager’s Financial Management work and report their findings to the business continuity plan, IT disaster Management reviews the performance AC on an annual basis. The external recovery planning and tests are of the MGCCT portfolio properties on auditors are also updated on the conducted to ensure that critical a monthly basis in order to maintain findings of the Manager’s Control IT systems remain functional in a the financial and operational discipline Self Assessment programme. crisis situation. of the Group. Transaction Review Committee Financial Reporting The key financial risks which the Group The Sponsor has established a The Board is updated on a quarterly is exposed to include interest rate risk, Transaction Review Committee basis on the Group’s financial liquidity risk, currency risk and credit comprising three independent performance. The Manager reports risk. Where appropriate, the Manager directors of the Sponsor to: on significant variances in financial procures hedging transactions to be (a) resolve any potential conflict of performance, in comparison with entered into so as to protect the Group interest that may arise between budgets and financial performance against interest and/or currency rate MGCCT and the Mapletree China of corresponding periods in the fluctuations. In addition, the Manager Opportunity Fund II (whose investment 82 Mapletree Greater China Commercial Trust

Corporate Governance Report

mandate includes investment properties are on normal commercial terms in the period commencing one in China) as well as any Future Greater and are consistent with similar month before the public China Commercial Private Fund1 types of transactions made by announcement of the Group’s (whose investment mandate includes the Trustee with third parties annual results; commercial properties in Greater which are unrelated to the in the period commencing two weeks China) concerning the process to be Manager; and before the public announcement undertaken to acquire investment transactions (either individually or of the Group’s quarterly and properties in Greater China; and as part of a series or if aggregated semi-annual results; and (b) grant approval for the acquisition with other transactions involving at any time whilst in possession of of any seed asset for a Future Greater the same interested person during price-sensitive information. China Commercial Private Fund. With the same financial year) equal to or regard to (a), the Transaction Review exceeding 5.0% of the value of the Each Director is required to notify the Committee process will not apply if Group’s net tangible assets will be Manager of his or her acquisition of the proposed acquisition is by way reviewed and approved prior to such MGCCT units or of changes in the of a tender, auction or other form of transactions being entered into, on number of MGCCT units which he or competitive process. the basis described in the preceding she holds or in which he or she has an paragraph, by the AC which may, as interest, within two business days of Interested Person Transactions it deems fit, request advice on the such acquisition or change of interest. All interested person transactions are transaction from independent sources In addition, employees of the Manager undertaken on normal commercial or advisers, including the obtaining and the Sponsor are to give pre-trading terms and the AC regularly reviews of valuations from independent notifications before any dealing in all interested person transactions to professional valuers. Further, under MGCCT units. ensure compliance with the internal the Listing Manual and the Property control system as well as with relevant Funds Appendix, such transactions Role of the Board and AC provisions of the Listing Manual and would have to be approved by The Board recognises the importance Appendix 6 of the Code on Collective the Unitholders at a meeting of of maintaining a sound internal control Investment Schemes issued by the the Unitholders. and risk management system to MAS (the “Property Funds Appendix”). safeguard the assets of the Group In addition, the Trustee has the right to The interested person transactions and Unitholders’ interests, through review such transactions to ascertain undertaken by the Group in FY15/16 a framework that enables risks to be that the Property Funds Appendix has are set out on page 147 of this Annual assessed and managed. been complied with. Report. For the purpose of the disclosures, the full contract sum is The AC provides oversight of the The following procedures are taken as the value of the transaction financial reporting risks, accounting also undertaken: where the interested person transaction policies and the adequacy and has a fixed term and contract value, effectiveness of the Group’s internal transactions (either individually or as while the annual amount incurred control and risk management system part of a series or if aggregated with and/or accrued is taken as the value as well as its compliance system. other transactions involving the same of the transaction where an interested interested person during the same person transaction has an indefinite The Board and the AC also take into financial year) equal to or exceeding term or where the contract sum is account the results from the Control S$100,000 in value but below 3.0% not specified. Self Assessment programme, which of the value of the Group’s net requires the respective departments tangible assets will be subject to Dealing in MGCCT units of the Manager to review and report review by the AC The Manager adopts the best practices on compliance with their key at regular intervals; on dealings in securities set out in the control processes. transactions (either individually or Listing Manual. All Directors are required as part of a series or if aggregated to disclose their interests in MGCCT It should be recognised that all internal with other transactions involving and are also provided with disclosures control and risk management systems the same interested person during of interests by other Directors as well as contain inherent limitations and take into the same financial year) equal reminders on trading restrictions. account the need to balance the costs of to or exceeding 3.0% but below implementing such controls against the 5.0% of the value of the Group’s On trading in MGCCT units, the benefits of such controls. Accordingly, net tangible assets will be subject Directors and employees of the Manager

to the review and prior approval are reminded not to deal in MGCCT units 1 Any private funds or follow-on private funds set up or of the AC. Such approval shall on short term considerations and are managed by the Sponsor with an investment mandate for commercial properties in Greater China, as described only be given if the transactions prohibited from dealing in MGCCT units: in page 201 of the Prospectus dated 27 February 2013. Annual Report 2015/2016 83 OVERVIEW the internal control and risk management Mr Kevin Kwok Khien, Chairman; reviews and, if required, investigates systems can only provide reasonable Mr Lok Vi Ming, Member; and the matters reported via the whistle- but not absolute assurance. Mr Michael Kok Pak Kuan, blowing mechanism, by which staff Member may, in confidence, raise concerns The Board has received assurance about suspected improprieties

from the CEO and the CFO that: The AC has written terms of reference including financial irregularities. STRATEGY (a) the Group’s financial records have setting out its scope and authority, been properly maintained and the which include: The objective of the whistle-blowing Group’s financial statements give a mechanism is to ensure that true and fair view of the Group’s review of annual internal and arrangements are in place for operations and finances; and (b) external audit plans; independent investigations of any the Group’s internal control and risk examination of interested reported matters and reviews of such PERFORMANCE management systems are effective. person transactions; investigations, to ensure appropriate review of audit findings of internal follow-up actions are taken. Opinion on Internal Controls and external auditors as well as Based on the internal control and management responses to them; A total of five AC meetings were risk management systems established evaluation of the nature and extent held in FY15/16. and maintained by the Manager and of non-audit services performed by

the Sponsor, work performed by the external auditors. In this regard, for The Manager, on behalf of the GOVERNAN Sponsor’s Internal Audit and Risk the financial year ended 31 March Group, confirms that the Group has Management Departments as well as 2016, MGCCT paid S$335,000 compiled with Rules 712, 715 and 716 by the external auditors, reviews to the network of member firms of the Listing Manual in relation to

performed by Management and of PricewaterhouseCoopers the Group’s auditing firm. C E the above assurance from the CEO International Limited (“PwC”) and & Su and the CFO, the Board, with the KPMG, of which S$271,000 was Internal Audit s

concurrence of the AC, is of the opinion for audit services and S$64,000 Principle 13: Independent Internal tainability that the Group’s internal control and was for non-audit services relating Audit Function risk management systems, addressing to tax compliance and advisory key financial, operational, compliance, services for the Group. The AC has Our Policy and Practices information technology and risk undertaken a review of all non-audit The Manager adopts the principle management objectives and which services provided by PwC and that a robust system of internal audits the Group considers relevant and KPMG and is of the opinion that is required to safeguard Unitholders’ material to its operations, were such non-audit services would not interests, the Group’s assets, and to FINANCIA adequate and effective to meet the affect the independence of PwC manage risks. Apart from the AC, needs of the Group in its business and KPMG as the external auditors; other Board committees may be environment as at 31 March 2016. review of the quality and reliability set up from time to time to address L S & O of information prepared for inclusion specific issues or risks.

Audit and Risk Committee in financial reports; thers Principle 12: Written Terms recommendation of the The IA function of the Group is of Reference appointment and re-appointment outsourced to the Sponsor’s IA of external auditors; and Department and the Head of IA Our Policy and Practices approval of the remuneration reports directly to the Chairman The Board is supported by the AC and terms of engagement of of the AC of both the Manager which provides additional oversight external auditors. and the Sponsor. of financial, risks and audit matters, so as to maximise the effectiveness In addition, the AC also: The role of the IA Department is of the Board and foster active to conduct internal audit work in participation and contribution. meets with the external and internal consultation with, but independently auditors, without the presence of, Management. Its annual audit plan The Manager adopts the principle of Management, at least once a and audit findings are submitted to that the AC shall have at least three year to review and discuss the the AC. The AC also meets with the members, all of whom must be financial reporting process, system Head of IA at least once a year without non-executive and the majority of of internal controls (including the presence of Management. whom must be independent. financial, operational, compliance and information technology The Sponsor’s IA Department The AC consists of three members. controls), significant comments and is a corporate member of the They are: recommendations; and Singapore branch of the Institute 84 Mapletree Greater China Commercial Trust

Corporate Governance Report

of Internal Auditors Inc. (the “IIA”), Communication with Shareholders or any other general meeting, the which has its headquarters in the Principle 15: Regular, Effective voting procedures will be made known USA. The IA Department subscribes and Fair Communication to the Unitholders to facilitate them in to, and is in conformance with, with Shareholders exercising their votes. the Standards for the Professional Practice of Internal Auditing developed Conduct of Shareholder Meetings Each resolution proposed at an by the IIA (the “IIA Standards”) and Principle 16: Greater Shareholder annual general meeting and any has incorporated these standards Participation at Annual other general meeting will be voted into its audit practices. General Meetings on by way of electronic polling. The Manager will announce the results The IIA Standards cover Our Policy and Practices of the votes cast for and against requirements on: The Manager adopts the principle each resolution and the respective that all Unitholders should be treated percentages and prepare minutes of independence and objectivity; fairly and equitably and their ownership such meetings. proficiency and due rights arising from their unitholdings professional care; should be recognised. The Manager has an Investor Relations managing the internal audit activity; Department which works with the engagement planning; To this end, the Manager issues Legal and Corporate Secretariat performing engagement; and via SGXNET announcements and Department of the Sponsor to ensure communicating results. press releases on the Group’s latest the Group’s compliance with the corporate developments on an legal and regulatory requirements IA Department staffs involved in immediate basis where required by applicable to listed REITs, as well as IT audits are Certified Information the Listing Manual. Where immediate to incorporate best practices in its System Auditors and members of the disclosure is not practicable, the investor relations programme. Information System Audit and Control relevant announcement will be made Association (the “ISACA”) in the USA. as soon as possible to ensure that The Manager regularly communicates The ISACA Information System Auditing all stakeholders and the public have major developments in the Group’s Standards provide guidance on the equal access to the information. businesses and operations to standards and procedures to be Unitholders, analysts and the media applied in IT audits. All Unitholders are entitled to receive through the issuance of announcements the annual report in digital format and press releases. In addition, all To ensure that the internal audits are packaged in a compact disc with announcements and press releases are performed by competent professionals, the option of receiving a printed first made on SGXNET and subsequently the Sponsor’s IA Department recruits version. The annual report encloses on MGCCT’s website. and employs qualified staff. In order a notice of annual general meeting that their technical knowledge remains and a proxy form with instructions Investors can subscribe to email current and relevant, the IA Department on the appointment of proxies. The alerts of all announcements and identifies and provides training and notice of annual general meeting press releases issued by MGCCT development opportunities to the staff. for each annual general meeting through its website. “Live” webcast is also published via SGXNET. An of analyst briefings are conducted, In compliance with the IIA Standards, annual general meeting is held once where practicable. an external quality assessment a year to provide a platform for review (“QAR”) of the Sponsor’s IA Unitholders to interact with the Board The Manager also communicates Department is conducted at least and Management, in particular the with MGCCT’s investors on a regular once every five years by a qualified, Chairman of the Board, the Chairman basis through group/individual meetings independent reviewer. The last external of the AC, the CEO and the CFO. with investors, investor conferences and QAR of IA was completed in January The external auditors are also present non-deal roadshows. The Manager’s 2013 and the QAR concluded that to address Unitholders’ queries CEO and CFO are present at briefings the Sponsor’s IA Department was in about the audit and the financial and communication sessions to answer conformance with the IIA Standards. statements of the Group. questions from investors.

(D) SHAREHOLDER RIGHTS Similarly, where a general meeting MGCCT’s distribution policy is to AND RESPONSIBILITIES is convened, all Unitholders are distribute at least 90% of its distributable entitled to receive a circular enclosing income and such distributions are Shareholder Rights a proxy form with instructions on typically paid on a semi-annual basis. Principle 14: Fair and Equitable the appointment of proxies. Prior to For FY15/16, MGCCT made two Treatment of All Shareholders voting at an annual general meeting distributions to Unitholders. Annual Report 2015/2016 85 OVERVIEW (E) ADDITIONAL DISCLOSURE ON FEES PAYABLE TO THE MANAGER

Pursuant to the Trust Deed, the Manager is entitled to receive the following fees:

Type of Fee Clause of Trust Deed, Computation and Form of Payment Rationale and Purpose STRATEGY Base Pursuant to Clause 15.1.1, the Manager is entitled The Base Fee compensates the Manager for Fee to receive a Base Fee of 10.0% per annum of the discharging its core responsibility of managing Distributable Income or such higher percentage MGCCT and covers the costs incurred in managing as may be approved by an Extraordinary Resolution MGCCT, which includes overheads, day-to-day of a meeting of Unitholders. operational costs, compliance, monitoring and

The Base Fee is payable monthly in the form of cash and/ reporting costs and administrative expenses. PERFORMANCE or quarterly in the form of Units as the Manager may elect. Performance Pursuant to Clause 15.1.2, the Manager is entitled to The Performance Fee which is based on DPU Fee receive a Performance Fee equal to a rate of 25.0% of growth creates long-term value and prospects the difference in DPU in a financial year with the DPU in for Unitholders by incentivising the Manager the preceding financial year (calculated before accounting to continuously grow the DPU on a stable and for the Performance Fee in each financial year) multiplied sustainable basis through efficient portfolio

by the weighted average number of Units in issue for management, proactive asset and operating cost GOVERNAN such financial year or such higher percentage as may be management and effective capital management. approved by an Extraordinary Resolution of a meeting Linking the performance-based element of the of Unitholders. Manager’s Management Fee to DPU growth directly aligns the interests of the Manager with The Performance Fee is payable if the DPU in respect C that of Unitholders, as the Manager’s Performance E of any Financial Year exceeds the DPU in the preceding & Su Financial Year, notwithstanding that the DPU in such Fee commensurates with the value it delivers to Unitholders in the form of distributable income. relevant financial year may be less than the DPU in the s tainability financial year prior to the preceding financial year. Taking on excessive risks for short-term gains to the detriment of Unitholders is deterred as the Manager For the purpose of the computation of the Performance strives to achieve stability and sustainability. Fee only, the DPU shall be calculated based on all income of MGCCT arising from the operations of MGCCT, such The DPU is also an objective, transparent and as, but not limited to, rentals, interest, dividends and other easy-to-understand performance indicator similar payments or income arising from the Authorised which is reported in MGCCT’s quarterly results announcements. Investments of MGCCT but shall exclude any one-off FINANCIA income of MGCCT, such as any income arising from any sale or disposal of: (a) any Real Estate (whether directly or indirectly); and (b) any Investments forming part of the L

Deposited Property. S & O The Performance Fee is payable annually in the form of cash and/or Units as the Manager may elect. thers Acquisition Pursuant to Clause 15.2.1(i), the Manager is entitled to The Acquisition Fee and Divestment Fee seek to Fee receive an Acquisition Fee not exceeding the rate of: motivate the Manager to continuously (in the case (a) 0.75% of the acquisition price for acquisitions from of acquisitions) pursue inorganic growth through Related Parties; and (b) 1.0% for all other acquisitions. quality yield-accretive acquisitions and (in the case Subject to the Property Funds Appendix, the Acquisition of divestments) review MGCCT’s property portfolio Fee is payable as soon as practicable after completion for asset-recycling opportunities, and compensate of the acquisition in the form of cash and/or Units as the the Manager for the time, effort and resources Manager may elect. expended (in the case of acquisitions) in sourcing for, evaluating and executing acquisition opportunities Divestment Pursuant to Clause 15.2.1(ii), the Manager is entitled to and (in the case of divestments) in rebalancing and Fee receive a Divestment Fee not exceeding the rate of 0.5% unlocking the underlying value of existing properties. of the sale price. The Manager provides these services over and Subject to the Property Funds Appendix, the Divestment above ongoing management services with the aim Fee is payable as soon as practicable after completion of optimising returns to Unitholders. of the divestment in the form of cash and/or Units as the The rate for the Acquisition Fee is higher than the Manager may elect. Divestment Fee, so as to take into account the additional work to be undertaken by the Manager for an acquisition when compared to a divestment.

Note: Undefined capitalised terms used in this Section (E) shall have the meanings ascribed to them in the Trust Deed. 86 Mapletree Greater China Commercial Trust Sustainability Report

Recognising the importance of environmental, social and governance issues to MGCCT and its stakeholders, the Manager remains committed to adopting responsible practices in order to create a sustainable future for MGCCT.

Engaging Stakeholders Investors Shoppers (including Unitholders, analysts, media) 3 Needs/Issues 1 Needs/Issues Enhanced shopping experiences Long-term sustainable Tenants distributions Range of amenities and choice of brands Needs/Issues 2 Transparency on reporting Quality office space of economic, social and Considerations for environmental concerns safety and accessibility and range of amenities Good corporate governance Easy connectivity to Efficient office/shop layout public transport Comfortable and safe Active portfolio management Trustee work environment Prudent capital Needs/Issues Communication management 4 Platforms High shopper traffic Safeguard the rights and by the Manager Competitive rental rates Communication interests of the Unitholders Advertisements and Platforms Ensure compliance with Communication by the Manager promotional events Platforms Trust Deed and regulations Annual General Meetings Customer service by the Manager Open communication and surveys Informal tenant SGXNet announcements channels gatherings, meetings Annual reports, results Online and mobile Communication communication platforms and feedback sessions briefings, webcasts and Platforms e.g. Facebook, WeChat Joint promotions conference calls by the Manager and Instagram and partnerships Website updates Monthly reporting Tourist passports Tenants’ engagement Non-deal roadshows, and updates and U-Card App activities conferences and meetings Ongoing dialogues and student privileges Newsletters Site tours of properties regular feedback

Promotions and events help Festival Walk engages with Analysts at a site visit to Unitholders at MGCCT’s enhance shoppers’ experience tenants regularly. Sandhill Plaza. 2nd AGM. at Festival Walk.

PP, OR PP, OR, SR FR, IR, CG, SR CG Annual Report 2015/2016 87 OVERVIEW

Approach to Sustainability of views, representatives from the REITs maintenance works and fitting-out works The Manager’s sustainability are rotated every two years. safely and in compliance with statutory efforts are guided by the Sponsor’s regulations. The table below details key ‘Shaping & Sharing’ Programme, which Our stakeholder groups comprising sustainability issues raised during regular is a group-wide framework directed at shoppers, tenants, investors, the Trustee, communications with the Manager. empowering individuals and enriching employees, business partners and STRATEGY communities, in order to deliver positive members of local communities, are Scope of Report shared outcomes to society and the important as their needs and interests This report focuses on data and environment. A five-member Board are closely intertwined with the long-term information on Festival Walk and Gateway Committee comprising members success of MGCCT. Across the supply Plaza in the financial year FY15/16 from from the Sponsor’s Board and senior chain, the Manager works closely with 1 April 2015 to 31 March 2016 compared management team as well as the boards of our tenants, vendors and shoppers to to the previous corresponding period. PERFORMANCE its REITs provides strategic insight for the ensure sustainability at the properties. Information on Sandhill Plaza from 1 April programme. Mr Michael Kok, the Manager’s Our sustainability efforts include the use 2015 to 31 March 2016 is included in this Board Director, represented MGCCT in this of environmentally-friendly sources, waste report but not compared with the same Board Committee from FY14/15 to FY15/16. management, energy savings, water period last year as the asset was acquired To ensure good governance and a diversity savings as well as the carrying out of on 17 June 2015.

Employees GOVERNAN Needs/Issues 5 Equitable reward and recognition C

Fair and competitive E employment practices & Su and policies s

Safe and healthy working Local tainability Business Communities environment Partners 7 Learning and development 6 Needs/Issues (including Governments, Regular engagement Corporate philanthropy regulators and vendors) Communication Environmental responsibility Platforms Needs/Issues Increased awareness by the Manager Fair and reasonable on social and Intranet, e-mails, business practices environmental issues FINANCIA recreational and team Win-win partnerships Communication building activities Compliance with rules Platforms Quarterly newsletters and regulations by the Manager L Performance appraisals Communication Charitable causes S & O and engagement surveys Platforms championed by

Staff communication and by the Manager non-profit organisations thers feedback sessions with Ongoing dialogue sessions Arts performances Management and Meetings, inspections Sustainable practices Board of Directors and networking events carried out by the Sponsor Training programmes Letters and emails and/or the Manager

Annual Spring Dinner event Festival Walk participates in the A workshop at “Glacier” ice rink PP: Property Portfolio p22-33 organised by the Sponsor and “Charter on External Lighting” to engage the local shoppers. FR: Financial Review p35-39 the Festival Walk team. organised by the Hong Kong OR: Operations Review p40-43 Government. IR: Investor Relations p72-73 SR CG SR CG: Corporate Governance p74-85 SR: Sustainability Report p86-96 88 Mapletree Greater China Commercial Trust

Sustainability Report

Rainwater is harvested at Sandhill Plaza for landscape irrigation

Plaza ensure that their environmental raise the bar by attaining the Hong Kong Caring management systems adhere to the local BEAM Plus – a more comprehensive for the statutory requirements and strive to meet certification standard. the industry best practices. Additionally, environment Festival Walk adopts Hong Kong’s 1 Based on the Building Research Establishment Building Environmental Assessment Environmental Assessment Methodology (“BREEAM”) 1 in the United Kingdom and with reference to LEED The Manager continues to manage Method (“BEAM”) . It attained the highest in the United States of America, HK-BEAM provides a comprehensive and fair assessment of the overall and improve the environmental level, a Platinum rating in 2006, which performance of a building in a range of sustainability efficiencies of its properties. Festival was extended in 2011 for another five issues relating to planning, design, construction, commissioning, management, operation and Walk, Gateway Plaza and Sandhill years. In 2016, Festival Walk targets to maintenance of buildings. Annual Report 2015/2016 89 OVERVIEW

Energy Conservation Electrical-powered hot water tanks that to 552,499 m3 in FY15/16. Gateway In FY15/16, our total energy are linked to the restroom faucet water Plaza successfully installed more water consumption at the three properties system are also fitted with solar panels meters to monitor water consumption recorded 44,013 megawatt hours which harnessed solar energy to power and minimise water wastage in the 3

(“MWh”). During the year, Festival Walk the heating system. This led to an premises. A total of 10,517 m of STRATEGY and Gateway Plaza achieved a total estimated energy savings of about 30 water was recycled from the fresh reduction in energy usage of 3.6% MWh/year. In addition, Sandhill Plaza water cooling towers at Festival Walk to 33,551 MWh1 with the adoption of also has in place an automatic lighting in FY15/16, compared to 14,000 m3 energy efficient initiatives. At Festival control system to reduce the usage of of water in FY14/15. This is mainly Walk, the reduction in operating non-essential lighting. due to the reduction in the number of hours of the electric heaters within the cooling towers in operation to provide PERFORMANCE air-conditioning units at the “Glacier” At Sandhill Plaza, 374,649 m3 of natural condensing water to the chiller plants ice rink as well as the installation of gas2 was consumed by the heating, during the year. energy-saving light fittings at its car park ventilation and air-conditioning (HVAC) ramp resulted in energy savings of an system and the canteen kitchen in A total of 61,853 m3 of water was estimated 485 MWh a year. To minimise FY15/16. For better efficiency, HVAC consumed at Sandhill Plaza in energy usage next year, Gateway temperature settings are adjusted FY15/16. To conserve water, the water

Plaza plans to switch to more energy regularly based on weather conditions. faucets at its restrooms are fitted GOVERNAN efficient LED lightings at its common with motion sensors and rainwater areas and to downsize one existing 750 Carbon emissions from electricity and is harvested for landscape irrigation. refrigeration-tonne chiller due to lower natural gas amounted to 9,062 tCO2e cooling demand after office-hours. at Sandhill Plaza. The total carbon C E

emissions from the three properties in & Su

As a result of the energy-saving FY15/16 was 31,376 tCO2e. s initiatives in FY15/16, the combined tainability carbon emissions at both Festival Walk Water Reduction and Gateway Plaza reduced by 3.6% Our total water consumption stood 3 1 Unlike Gateway Plaza, the electricity to 22,314 tCO2e. at 614,352 m in 2015. Water consumption figure reported for Festival Walk consumption by both Festival Walk excludes the usage of power and lighting by Energy consumption at Sandhill Plaza and Gateway Plaza declined slightly the tenants within the leased premises. 2 Natural gas is not in use at either Festival Walk 3 amounted to 10,462 MWh in FY15/16. by 3.0% from 569,708 m in FY14/15 or Gateway Plaza. FINANCIA

Annual Greenhouse Gas L

Annual Electricity Consumption (GHG) Emissions Annual Water Consumption S & O

3 (MWh) (tCO2e) (m ) thers

48,000 32,000 31,376 620,000 614,352 9,062 tCO e 61,853 m 3 44,013 2 572,515 569,708 42,000 10,462 MWh 28,000 was 560,000 was was generated consumed 24,717 by SP by SP 36,000 35,311 consumed 24,000 500,000 34,791 by SP 23,151 30,000 20,000 440,000

24,000 16,000 380,000

18,000 12,000 320,000

12,000 8,000 260,000

6,000 4,000 200,000

0 0 140,000 FY13/14 FY14/15 FY15/16 FY13/14 FY14/15 FY15/16 FY13/14 FY14/15 FY15/16

Note: Energy consumed in FY13/14 and FY14/15 relates Note: GHG generated in FY13/14 and FY14/15 relates to Note: Water consumed in FY13/14 and FY14/15 relates to only Festival Walk and Gateway Plaza. FY15/16 includes only Festival Walk and Gateway Plaza. FY15/16 includes to only Festival Walk and Gateway Plaza. FY15/16 includes energy consumed by Sandhill Plaza (SP). GHG generated by Sandhill Plaza. water consumed by Sandhill Plaza. 90 Mapletree Greater China Commercial Trust

Sustainability Report

Waste Management Total general waste collected from the three Spotlight on: properties amounted to 7,911 tonnes in FY15/16. Festival Walk and Gateway Plaza Waste Management at collected 6,031 tonnes of waste in FY15/16, Festival Walk and Gateway Plaza slightly more than last year due to more chemical waste, plastic and styrofoam boxes Waste Collected collected. Chemical waste, comprising mainly non-halogenated solvent1, fluorescent tubes and batteries, was properly disposed 6,031 under Hong Kong’s Waste Disposal tonnes in FY15/16 Ordinance (Cap. 354). At Sandhill Plaza, 1,880 tonnes of general waste were collected from the offices in FY15/16. Waste Segregation Waste management and the need to reduce and recycle waste are crucial in Hong Kong due to rapidly filling landfill areas. To reduce waste, Festival Walk has in place a comprehensive waste management Paper Plastic Aluminium Food Christmas Bottles programme which facilitates the segregation cans waste deco and collection of waste from its office and retail tenants for third-party recycling. Existing tenants are continuously reminded to adhere to the building’s waste segregation Books Wooden Chemical Old Styrofoam Batteries pallets waste appliances boxes practices while all frontline cleaners and contractors are provided with regular training on the handling of recycled materials. The asset also has processes in place to ensure the waste is properly disposed of at government approved landfill areas.

Festival Walk continues to expand the Waste Recycled Waste Disposal number of waste types for recycling. During the year, Festival Walk included Waste Collection & Recycling in Action old appliances, used festive decorations at Festival Walk and Gateway Plaza and books to its list. There was increased patrolling at the refuse chamber to discourage the disposal of large debris by tenants. The mall’s efforts to promote conservation of natural resources remained effective with more tenants joining its recycling programme during the year. Gateway Plaza continued its e-waste Recycling bins to help segregate waste. GoMixer to recycle food waste. recycling programme to allow eco-conscious tenants to dispose their used batteries and printer cartridges in designated recycling bins. As a result of these efforts in both properties, a total of 2,160 tonnes was recycled in FY15/16 compared to 1,967 tonnes in the previous year.

Cardboard boxes are collected 1 The non-halogenated solvent was extracted from the for recycling. Collecting e-waste such as used batteries. comprehensive cleaning of the petrol interceptor system at Festival Walk’s car park. The system filters oil and other waste from the drainage water collected from the car park. Annual Report 2015/2016 91 OVERVIEW

Annual General Waste Collected Better Indoor Air Quality with participating tenants, marked from Office & Retail Both Festival Walk and Gateway Plaza ‘Earth Hour’ in March 2016 by switching are committed to maintaining good off non-essential lighting in and around (tonnes) indoor air quality (“IAQ”). In recognition their premises to reduce consumption. 8,000 7,911 of its ongoing efforts to maintain clean To further support this cause, Festival STRATEGY 1,880 tonnes air, Festival Walk achieved ‘Excellent Walk joined the Charter on External 7,000 was collected Class’ for its office common area for the Lighting in FY15/16 and has been by SP 6,000 6,006 eighth consecutive year while the mall’s switching off façade and external 5,504 common areas were certified Good‘ lightings for extended hours from 11pm 5,000 Class’ for the fifth consecutive year to 7am since 1 April 2016. Catering to 4,000 under the Hong Kong Government’s the growing demand for cleaner energy, PERFORMANCE IAQ Certification Scheme. both Festival Walk and Gateway Plaza 3,000 installed plug-in electric vehicle charging

2,000 Gateway Plaza continued to implement stations at their basement car parks for effective measures to address health the convenience of shoppers and/or 1,000 concerns of its tenants and staff working tenants. Further advocating recycling to

0 in the building. During the year, F7 air reduce waste, Festival Walk joined efforts 1 FY13/14 FY14/15 FY15/16 filters were installed while constant with Friends of the Earth for the first time GOVERNAN reminders were sent to tenants to keep to encourage tenants and shoppers Note: Waste collected in FY13/14 and FY14/15 relates to only the windows closed at all times. to donate used clothing, which will be Festival Walk and Gateway Plaza. FY15/16 includes waste collected by Sandhill Plaza. All numbers have been revised to channelled to the various charities in include chemical waste collection at Festival Walk. Raising Eco-Awareness aid of the needy. C E

The Manager continues to promote & Su awareness of sustainability issues

1 These filters comply with the EN779:2012 standard s amongst its tenants, shoppers and or equivalent. Commonly applied in the industry, the tainability staff. Festival Walk participates actively EN779:2012 standard is the latest European Standard that prescribes performance standards for particulate in key government-led and international air filtration. initiatives including the Energy Saving 2 Organised by the Environment Bureau and the Electrical and Mechanical Services Department, Hong Kong Charter2. All three properties, together SAR Government. FINANCIA Spotlight on: L Asset Enhancement 32,800kWh S & O thers Works at Festival Walk Fluorescent lamps will be replaced with LED lamps, resulting in an estimated annual savings of 32,800 kWh. During FY15/16, Festival Walk embarked on the refurbishment of 14 sets of its toilets to enhance shoppers’ experience. There was a strong focus on green features in the design of the asset enhancement works, expected to be completed by the end of FY16/17. Fluorescent lamps will be replaced with LED lamps, resulting in an estimated annual savings of 32,800 kWh. Water efficient taps certified with the Voluntary Water Efficiency Labelling (WELS) scheme will also be used in the toilets. Wherever possible, building materials and equipment from demolition works which are The toilets at Festival Walk were upgraded with still in good condition would be reused. water- and energy-saving features. 92 Mapletree Greater China Commercial Trust

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reported injuries to staff and zero Dedicated major accidents at the three properties Our People to safety & in FY15/16. are our Health At the Manager’s offices in Singapore, assets Beijing and Shanghai, staff and Safety is of utmost importance tenants were given precautionary health The Manager adopts the Sponsor’s for MGCCT’s tenants, shoppers, advisories to ensure the safety of staff integrated human capital strategy contractors and employees. In in the event of deteriorating air quality in in creating a diverse, inclusive and our daily operations, all tenants, these cities. In the event of an outbreak collaborative workplace that provides contractors, vendors and employees of infectious disease announced by the opportunities to all employees to realise at the three properties are required governments, circulars on preventive their potential and contribute to our to adhere to standard safety measures will be issued promptly to collective success. requirements and procedures. all tenants and employees. Operations personnel receive Promoting Fairness regular occupational safety & health To strengthen operational readiness, and Diversity training and technical support business continuity measures including Our human resource policy is grounded to inculcate a stronger sense of fire drills were tested and fine-tuned at on equal opportunities and fair responsibility and ownership. Other all three properties during FY15/16. Drills employment practices. These cover precautionary measures include for other scenarios such as flooding, the way the Sponsor and the Manager conducting fire safety audits and chemical liquid spill and bomb threat handle human resource practices such regularly checking and maintaining were also carried out at Festival Walk. as recruitment, performance appraisal, safety equipment such as sprinkler business conduct, employee grievances, systems, hose reels, emergency Since the flooding incident which remuneration and training. As of lighting, alarms, pumps and smoke affected some parts of Festival Walk 31 March 2016, the Manager and the vents. These resulted in zero on the night of 30 March 2014, the Property Manager (including staff at Manager had completed all improvement Festival Walk, Gateway Plaza and Sandhill works to strengthen the rainwater Plaza) employed 243 staff1, of which drainage pipes in May 2015. To prevent 33% were executives and 67% were recurrence, routine inspections to pipes non-executives. The employee profile by in both tenants’ premises and common geography comprised 92% from Hong Zero areas were stepped up, while patrols at Kong, 6% from Singapore and 2% from the roof of different parts of the building Beijing/Shanghai. 24% of our employees reported injuries to staff and as well as internal and external areas of were less than 30 years old, 53% zero major accidents at the the building were enhanced during the between the age of 30 and 50, and 23% three properties in FY15/16. rainy season. more than 50 years old. Female and male employees constituted 42% and 58% respectively. At the senior management level, comprising those at Vice President level and above, 67% were female.

Talent Recruitment and Management For talent recruitment in Singapore, Hong Kong, Beijing and Shanghai, the Manager taps on the Sponsor’s strategic resources and platforms. These include career fairs, partnerships with educational institutions, social media, job portals as well as internships and work placement programmes. These

Over 300 staff and tenants participated at Sandhill Plaza’s annual fire drill and received 1 Headcount does not include third party service providers training on fire escape routes and basic firefighting procedures. engaged to perform certain property management services. Annual Report 2015/2016 93 OVERVIEW STRATEGY PERFORMANCE GOVERNAN C E & Su Families of staff were invited to join in the Chinese New Year celebrations at Festival Walk. s tainability FINANCIA L S & O thers

Staff from Festival Walk and Gateway Plaza at the Leadership The traditional dragon and lion dance performance at Gateway Plaza to Foundation Programme conducted by the Sponsor. celebrate the Festival of Lanterns.

programmes target undergraduates opportunities that are extended to Competitive Compensation and polytechnic students and Singapore employees. During the and Benefits provide real-world experience in year, employees from Festival Walk The Manager adopts the Sponsor’s the real estate industry and are and Gateway Plaza participated in pay-for-performance framework as avenues to identify promising interns the Sponsor’s Leadership Foundation it believes this will help cultivate a for future recruitment. Programme. Held in Shanghai, the high-performing and motivated culture. course was designed to sharpen Employees are incentivised through Committed to building a strong, capable management and business skills. annual bonus plans that are tied to and motivated team, the Sponsor Learning opportunities were also financial and non-financial performance invests in learning and development provided to personnel through targets as well as longer-term incentive programmes and seeks to provide on-the-job training, technical briefings plans linked to value creation at the overseas staff with the same learning and overseas work trips. Sponsor’s level. During the year, the 94 Mapletree Greater China Commercial Trust

Sustainability Report

compensation and benefit schemes create a positive and engaging working a crime prevention seminar to raise for staff in overseas markets environment. Events that promote family awareness among tenants on preventive were benchmarked against their bonding such as movie screenings measures against credit card fraud. respective market practices to and the Safari Zoo Run 2016 were also ensure competitiveness in attracting part of the engagement efforts. During The Manager also focused on organising and retaining talent. the year, the Sponsor had partnered more events and promotions to help with an external health provider to drive tenant sales at the mall. Some Employee Engagement offer employees free preventive health of these are featured in the Property To promote greater engagement screenings to test for chronic illnesses Portfolio section of this report. with management, lunch sessions such as high blood pressure, high with staff (including employees cholesterol, coronary heart disease, from the Manager) are organised in hypertension and diabetes. Hong Kong, Beijing and Shanghai Supporting to encourage interaction in an Together with the Health Promotion informal setting. During these Board, the Sponsor continues to organise Community staff communication sessions, the Workplace Health Promotion series, Causes employees are encouraged to raise which is extended to the tenants of questions freely to help further their Mapletree Business City. These activities The Sponsor, together with the Manager, understanding of the Sponsor and include fitness sessions, blood donation continues to lead and actively support the Manager’s strategies, policies drive, and lunch talks on lifestyle topics. community efforts aligned with the or performance. ‘Shaping & Sharing’ Programme. As a strong supporter of tertiary education The Sponsor conducted an extensive in Singapore, the Sponsor contributed Employee Engagement Survey in Strengthening S$500,000 to students pursuing 2014. Based on the results from practice-oriented education at SIM the survey, the Manager is on track Tenant University (UniSIM) this year. To date, to implement changes in the areas Relations over 90 university students from six identified for further improvement, universities in Singapore have benefitted such as cutting down unnecessary The Manager continues to conduct annually from the Sponsor’s total documentation procedures, regular meetings and informal sessions contribution of S$3 million. and providing more training and with tenants to better understand their development opportunities for needs, and to receive valuable feedback To recognise academic excellence, overseas colleagues. on the management of our properties. the Sponsor established the Mapletree Tenants are also invited to participate in Academic Achievement Programme Promoting Wellness networking activities such as Christmas (MAAP) in FY15/16, with its maiden The Sponsor’s Recreation Club and Chinese New Year celebrations. initiative to sponsor selected diploma regularly organises activities to During the year, Festival Walk partnered graduation book prizes across all promote staff interaction and with the Hong Kong Police to conduct five local polytechnics for five years,

Roses for sale on Valentine’s Day in support of the Children getting a head start in foreign languages at the St. James Settlement. ‘Speak Dating’ Event organised by Goethe-Institut. Annual Report 2015/2016 95 OVERVIEW starting from Academic Year 2015/2016. champion social causes and promote Red Cross Blood Transfusion Service The MAAP has also committed to community involvement. In FY15/16, organised its annual Blood Donation sponsoring 30 graduation prizes for the the mall was the venue sponsor for Drive with a mobile donation service diploma programmes of SIM Global the Charles K. Kao (CKK) Foundation centre within Festival Walk’s premises

Education for a period of five years, charity events in support of those and saw the support of 123 donors over STRATEGY from the next academic year. suffering from Alzheimer’s disease, the two-day drive. St. James Settlement’s ‘Valentine’s Day In China, the Sponsor has been Roses Charity Sale’ and the Wai Yin Festival Walk is also a strong supporter providing assistance to low-income Association’s Charity Mooncake Sales. of community arts, sports and cultural residents in the districts of Minhang The CKK Foundation also held its first performances. In addition to the live (Shanghai) and Nanhai (Foshan) under a painting exhibition by Professor Charles music performances as part of the PERFORMANCE RMB10 million programme for five years K. Kao at the mall with proceeds from mall’s Christmas and Chinese New since 2012. The funds are disbursed to the silent auction channelled to the Year celebrations and various skating both the Nanhai Charity Society and the Foundation. These events raised competitions at the ice rink “Glacier”, Minhang District Branch of the Shanghai around HK$1.1 million (approximately artistic displays such as the ‘Arts in Charity Foundation in aid of their S$198,500) in total. the Park Parade Artwork Exhibition’, community support programmes. which was sponsored by the Standard

More than 400 students and young Chartered Bank and supported by GOVERNAN Championing Corporate adults participated in the mall’s second the Hong Kong Youth Art Foundation, Social Responsibility ‘Speak Dating’ event, organised by helped nurture and promote creativity. In Activities at Festival Walk Goethe-Institut and supported by recognition of these community outreach

As a destination mall in a large various foreign consulates and cultural efforts, Festival Walk was recognised by C E catchment area attracting over centres to encourage the appreciation the Hong Kong Council of Social Service & Su 40 million locals and tourists a year, of European languages. Held for the with the ‘Caring Company Certificate’ for s

Festival Walk is a strategic platform to 15th consecutive year, the Hong Kong the fourth consecutive year. tainability

Community Outreach:

Arts and Performances FINANCIA L S & O thers

Showcase of artistic talent supported by the Hong Kong Youth Art Foundation.

A choir performance as part of the mall’s Christmas celebrations. Ice skating competition at the “Glacier”. 96 Mapletree Greater China Commercial Trust

Sustainability Report

Charity Events at Festival Walk

Hong Kong celebrity Louis Koo at the CKK Foundation’s inaugural painting exhibition.

‘Love Christmas – Love Donating Toys’ event in support of the Salvation Army. HK$1.1 million

was raised from the charity events Festival Walk supported CKK Foundation’s outreach efforts at Festival Walk in FY15/16 at its Alzheimer’s disease center for the elderly.

Former and current Miss Hong Kong at the Wai Yin Association’s Charity The events were kicked off in style by Mooncake Sales. Hong Kong celebrity Miriam Yeung. OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others 97 t 2015/2016 r l Repo a Annu s

s nt onte Report the of Trustee Statement the by Manager Independent Auditor’s Auditor’s Independent Unitholders the Report to Statements Return Total of Position Financial of Statements Statements Distribution Statements of Movements Movements of Statements Funds Unitholders’ in Consolidated Statement of Cash Flows Portfolio Statement Notes the to Financial Statements

C 98 99 100 Financial Statement 101 102 103 104 105 106 108 98 Mapletree Greater China Commercial Trust

REPORT OF THE TRUSTEE For the financial year ended 31 March 2016

DBS Trustee Limited (the “Trustee”) is under a duty to take into custody and hold the assets of Mapletree Greater China Commercial Trust (“MGCCT”) and its subsidiaries (the “Group”) in trust for the holders (“Unitholders”) of units in MGCCT. In accordance with the Securities and Futures Act (Cap. 289), its subsidiary legislation and the Code on Collective Investment Schemes (“CCIS”) (collectively referred to as the “laws and regulations”), the Trustee shall monitor the activities of Mapletree Greater China Commercial Trust Management Ltd. (the “Manager”) for compliance with the limitations imposed on the investment and borrowing powers as set out in the trust deed dated 14 February 2013 (the “Trust Deed”) between the Trustee and the Manager in each annual accounting period and report thereon to Unitholders in an annual report.

To the best knowledge of the Trustee, the Manager has, in all material respects, managed MGCCT and the Group during the financial year covered by these financial statements, set out on pages 101 to 144, in accordance with the limitations imposed on the investment and borrowing powers set out in the Trust Deed.

For and on behalf of the Trustee, DBS Trustee Limited

Jane Lim Director

Singapore, 27 April 2016 OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others 99 t 2015/2016 r l Repo a Annu R E G MANA E H T BY ei ei P TATEMENT Singapore, April 27 2016 Director Cindy Chow P For and on behalf the of Manager, Ltd. Management Trust Commercial China Greater Mapletree In the opinion the of Directors Mapletree of Greater China Commercial Management the Trust accompanying Ltd., financial statements Mapletree of Greater China Commercial (“MGCCT”) Trust and its subsidiaries (the as “Group”), set out on comprising 144, the to Statementspages Financial of 101 Position MGCCT of and the Group, and PortfolioStatement the of the Return, Statements DistributionGroup March Total of as at 31 2016, Statements, Statements Movements of in Unitholders’ Funds MGCCT of and the Group, the Consolidated Statement Cash of Flows the of Group and the Notes Financial to Statements for the financialyear then ended are drawn up to so presentas in fairly, all material respects, the financial position of MGCCT and and the theof return, total Group March amount as at 31 2016 distributable, movements in Unitholders’ fundsMGCCT of and the Group and consolidated cash flowsof the Groupfor theyear then ended in accordance with the recommendationsof Statement Recommendedof Accounting Practice 7 “Reporting Framework issued for Unit Trusts” the by Institute Singapore of Chartered Accountants. the this At date of statement, there are reasonable grounds believe to that MGCCT and the Group will be able to meetits financial obligations as and when they materialise. For the financialyear 31 endedMarch2016 S 100 Mapletree Greater China Commercial Trust

INDEPENDENT AUDITOR’S REPORT To the Unitholders of Mapletree Greater China Commercial Trust (Constituted under a Trust Deed in the Republic of Singapore)

Report on the Financial Statements We have audited the financial statements of Mapletree Greater China Commercial Trust (“MGCCT”) and its subsidiaries (the “Group”) which comprise the Statements of Financial Position of MGCCT and the Group, and Portfolio Statement of the Group as at 31 March 2016, the Statements of Total Return, Distribution Statements, Statements of Movements in Unitholders’ Funds of MGCCT and the Group and the Consolidated Statement of Cash Flows of the Group for the financial year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 101 to 144.

Manager’s Responsibility for the Financial Statements The Manager of MGCCT (the “Manager”) is responsible for the preparation and fair presentation of these financial statements in accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Singapore Chartered Accountants, and for such internal control as the Manager determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Manager, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of MGCCT and of the Group as at 31 March 2016, the total return, amount distributable and movements in unitholders’ funds of MGCCT and the Group and the consolidated cash flows of the Group for the financial year ended on that date in accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Singapore Chartered Accountants.

PricewaterhouseCoopers LLP Public Accountants and Chartered Accountants

Singapore, 27 April 2016 OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others ------101 71 (12) 2015 (543) (957) S$’000 4.904 4.904 (4,208) (1,692) (17,804) 157,757 132,624 132,624 132,612 t 2015/2016 r ------MGCCT (35) l Repo 207 422 2016 (620) a S$’000 5.074 5.074 (4,884) (1,377) (19,987) 165,256 139,017 139,017 138,982 Annu - 476 2015 (543) S$’000 (4,208) (2,511) (3,957) (3,086) 11.811 11.811 (51,834) (17,804) (40,842) (33,819) 281,144 229,310 159,921 196,383 353,218 319,399 - Group 557 2016 (620) S$’000 8,378 (4,884) (2,219) 32,340 15.629 15.629 (59,172) (19,987) (65,008) (37,843) 336,638 277,466 217,645 239,921 465,944 428,101 n 3 4 5 6 8 8 ur 13 7(a) Note tal Ret tal s of To Base fee Performance fee before income tax income before distributionbefore et propertyet income et income income et arnings per unit (cents) unit per arnings otal return for the financial year otal return for the financial year after income tax Basic Diluted The accompanying notes form an integral part of these financial statements. Gross revenue For the financialyear 31 endedMarch2016 Statement Propertyoperating expenses N Dividend income Interest income Interest Trustee’s fee Trustee’s Management fees Management - - Other trust expenses Foreign exchange gain/(loss) exchange Foreign Finance costs N Net change in fair value financial of derivatives Net change in fair value investment of properties T T Income tax expenses E - - 102 Mapletree Greater China Commercial Trust

STATEMENTS OF FINANCIAL POSITION As at 31 March 2016

Group MGCCT 2016 2015 2016 2015 Note S$’000 S$’000 S$’000 S$’000

ASSETS Current assets Cash and bank balances 9 206,107 125,110 90,861 87,588 Trade and other receivables 10 10,740 11,083 3,907 11,990 Other current assets 11 885 796 - 2 Inventories 848 771 - - Derivative financial instruments 12 3,166 - 3,166 - 221,746 137,760 97,934 99,580

Non-current assets Derivative financial instruments 12 6,419 - - - Investment properties 13 5,922,457 5,349,298 - - Plant and equipment 14 1,349 1,003 - - Deferred tax assets 18(a) 1,533 - - - Investments in subsidiaries 15 - - 2,388,356 2,400,287 5,931,758 5,350,301 2,388,356 2,400,287

Total assets 6,153,504 5,488,061 2,486,290 2,499,867

LIABILITIES Current liabilities Trade and other payables 16 147,119 76,346 12,746 10,842 Borrowings 17 462,384 273,662 - - Current income tax liabilities 7(b) 35,257 34,769 55 20 Derivative financial instruments 12 2,638 10,473 2 10,211 647,398 395,250 12,803 21,073

Non-current liabilities Trade and other payables 16 62,387 66,384 - - Borrowings 17 1,959,877 1,710,301 - - Derivative financial instruments 12 13,690 19,514 - - Deferred tax liabilities 18(b) 53,965 36,428 - - 2,089,919 1,832,627 - -

Total liabilities 2,737,317 2,227,877 12,803 21,073

NET ASSETS ATTRIBUTABLE TO UNITHOLDERS 3,416,187 3,260,184 2,473,487 2,478,794

Represented by: Unitholders’ funds 3,208,784 2,933,350 2,470,323 2,484,008 Hedging reserve 19 656 (6,674) 3,164 (5,214) Foreign currency translation reserve 206,747 333,508 - - 3,416,187 3,260,184 2,473,487 2,478,794

UNITS IN ISSUE (’000) 20 2,757,579 2,721,033 2,757,579 2,721,033

NET ASSET VALUE PER UNIT (S$) 1.239 1.198 0.897 0.911

The accompanying notes form an integral part of these financial statements. OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others ------103 543 956 2015 S$’000 45,427 83,210 21,916 92,503 22,012 45,427 (83,186) (85,560) (21,401) 132,612 178,039 261,249 (168,746) (147,345) (168,746) t 2015/2016 r ------MGCCT l Repo 620 2016 (422) a S$’000 9,055 60,892 92,503 26,768 24,871 60,892 (95,866) (92,461) (28,090) 138,982 199,874 292,377 104,050 (188,327) (160,237) (188,327) Annu - - - - - 543 2015 S$’000 3,086 7,170 5,496 83,210 22,012 92,503 10,496 (85,560) (83,186) (21,401) 319,399 178,039 261,249 (141,360) (168,746) (190,163) (141,360) (147,345) (168,746) - - - - Group 620 2016 S$’000 8,044 1,022 (8,378) 92,503 24,871 12,089 (95,866) (92,461) (36,164) (28,090) 428,101 199,874 292,377 104,050 (228,227) (188,327) (230,331) (228,227) (160,237) (188,327) S TATEMENT S N O TI BU I nitholders’ distribution: nitholders’ TR S Foreign exchange gain on capital item Net change in fair value investment of properties net deferred of tax impact Management fees paid/payable in units Net change in fair value financial of derivatives Trustee’s fees Trustee’s feesFinancing Property Manager’s management fees paid/payable in units From Unitholders’From contribution From operationsFrom I

and other adjustments A) (Note beginning of the financial year financial the beginning of 1 April 2014 to 30 September to 1 April 2014 2014 1 October 2013 to 31 March 31 2014 to 1 October 2013 1 April 2015 to 30 September to 1 April 2015 2015 1 October 2014 to 31 March 31 2015 to 1 October 2014 - in the form capital of returns at end the of financialyear - - - items and other adjustments comprise: - - - - - otal U otal The accompanying notes form an integral part of these financial statements. Total return for the financialTotal year For the financialyear 31 endedMarch2016 D Adjustment for net effect non-tax of (chargeable)/deductible items distribution for available Amount Amount available for distribution Unitholders to at Distribution of 3.162 cents per unitDistribution for the period 3.162 of from Unitholders’Total distribution (including capital return) B) (Note Distribution 3.099 of cents per unit for the period from Distribution cents 3.499 of per unit for the period from Distribution Unitholders: to Distribution 3.398 of cents per unit for the period from Net overseas income distributed back MGCCT to Net overseas income not distributed MGCCT to Amount available for distribution Unitholders to ote A: Note (chargeable)/deductible non-tax of effect net for Adjustment items: deductible/(chargeable) non-tax Major Other non-tax deductible items and other adjustments other and items deductible non-tax Other ote B: Note T 104 Mapletree Greater China Commercial Trust

STATEMENTS OF MOVEMENTS IN UNITHOLDERS’ FUNDS For the financial year ended 31 March 2016

Group MGCCT 2016 2015 2016 2015 Note S$’000 S$’000 S$’000 S$’000

Operations

Beginning of the financial year 485,720 313,666 36,378 51,111 Total return for the financial year 428,101 319,399 138,982 132,612 Distributions to Unitholders (160,237) (147,345) (160,237) (147,345) End of the financial year 753,584 485,720 15,123 36,378

Unitholders’ contribution

Beginning of the financial year 2,447,630 2,436,715 2,447,630 2,436,715 Management fees paid in units 35,660 32,316 35,660 32,316 Distributions to Unitholders (28,090) (21,401) (28,090) (21,401) End of the financial year 2,455,200 2,447,630 2,455,200 2,447,630

Unitholders’ funds at end of the financial year 3,208,784 2,933,350 2,470,323 2,484,008

Foreign currency translation reserve

Beginning of the financial year 333,508 83,295 - - Reclassification to Statements of Total Return (36,164) - - - Translation differences relating to financial statements of foreign subsidiaries and quasi equity loans (90,597) 250,213 - - End of the financial year 206,747 333,508 - -

Hedging reserve

Beginning of the financial year (6,674) 6,027 (5,214) (2,128) Fair value changes, net of tax 111 (23,913) 3,164 (10,211) Reclassification to Statements of Total Return, net of tax 7,219 11,212 5,214 7,125 End of the financial year 19 656 (6,674) 3,164 (5,214)

Net assets attributable to unitholders at end of the financial year 3,416,187 3,260,184 2,473,487 2,478,794

The accompanying notes form an integral part of these financial statements. OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others - - - 105 486 468 2015 (476) (153) (674) S$’000 3,086 3,366 (2,304) (1,293) (4,974) (5,180) (1,007) 22,012 10,496 40,842 33,819 20,060 25,628 (26,626) (33,039) (11,469) 319,399 230,977 249,591 222,965 269,842 133,213 125,110 125,110 (196,383) (321,932) (168,746) (229,254) t 2015/2016 r Group 99 15 l Repo 463 569 2016 (557) (702) a S$’000 1,634 1,072 (8,378) (4,280) (1,827) 24,871 12,089 65,008 37,843 37,619 45,205 (36,164) (21,252) (12,855) (52,438) 428,101 283,454 286,175 264,923 691,829 160,902 206,107 220,000 108,120 125,110 (239,921) (322,436) (335,424) (558,664) (188,327) Annu 9 9 9 Note OWS L SH F OF CA TATEMENT D S ATE D LI SO N O Management fee paid/payable in units Property Manager’s management fee paid/payable in units Finance costs Interest income Foreign exchangegain Net change in fair value financial of derivatives Income tax expenses Amortisation rent of free incentive Net change in fair value investment of properties and other receivablesTrade and other payablesTrade Income tax paid et cash provided by operating activities operating by provided cash et

Depreciation Inventories - The accompanying notes form an integral part of these financial statements. ------Operating cash flows beforeworking capital changes - Cash flows from operating activities operating from flows Cash return for the financialTotal year For the financialyear 31 endedMarch2016 C Adjustments for: - - - capital: Changes working in - - Cash generated from operations - Additions investment to properties equipment and plant to Additions N Cash flows from investing activities acquired cash of net subsidiaries, of Acquisition Interest income received activities investing in used cash Net Cash flows from financing activities borrowings of Repayment borrowings from Proceeds paid fees Financing paid Interest held equivalents cash and cash in increase/(decrease) Net Cash and cash equivalents at end of the financial year Cash and bank balances at end of the financial year Proceeds from issuance Notes of Payment distributions of Unitholders to activities financing in) by/(used provided cash Net Cash and cash equivalents at beginning the of financialyear Effect currency of translation on cash and cash equivalents Amount received and set aside be repaid to a related to party 106 Mapletree Greater China Commercial Trust

PORTFOLIO STATEMENT As at 31 March 2016

Gross revenue Gross revenue Occupancy Occupancy for financial year for financial year rates at rates at Latest Valuation at Valuation at Acquisition Term of Remaining Existing ended 31/03/2016 ended 31/03/2015 31/03/2016 31/03/2015 valuation 31/03/2016 31/03/2015 Description of leasehold property date lease term of lease Location use S$’000 S$’000 % % date S$’000 S$’000

Investment property in The Hong Kong Special Administrative Region of the People’s Republic of China (“Hong Kong SAR”): Festival Walk 07/03/2013 54 years (b) 31 years No. 80, Tat Chee Avenue, Commercial 236,499 206,444 100.0 100.0 31/03/2016 4,253,079 4,077,871 Kowloon, Hong Kong

Investment property in The People’s Republic of China (“PRC”): Gateway Plaza 07/03/2013 50 years (c) 37 years No. 18 Xiaguangli, East 3rd Commercial 82,299 74,700 96.8 98.0 31/03/2016 1,256,271 1,271,427 Ring Road North, Chaoyang District, Beijing, PRC

Sandhill Plaza 17/06/2015 50 years (d) 44 years Blocks 1 to 5 and 7 to 9, Commercial 17,840 - 100.0 - 31/03/2016 413,107 - No. 2290 Zuchongzhi Road, Pudong New District, Shanghai, PRC

Investment properties - Group 336,638 281,144 5,922,457 5,349,298 Other assets and liabilities (net) - Group (2,506,270) (2,089,114) Net assets attributable to Unitholders 3,416,187 3,260,184

Notes: (a) The carrying amounts of the investment properties were based on independent full valuations as at 31 March 2016 (2015: 31 March 2015) undertaken by Colliers International (Hong Kong) Limited (2015: Cushman & Wakefield Valuation Advisory Services (HK) Ltd), an independent valuer. Colliers has appropriate professional qualifications and experience in the locations and category of the properties being valued. The full valuations of the investment properties were based on discounted cashflow method and term and reversion analysis. (b) Comprises land lease of 31 years ending in 2047. (c) Comprises land lease of 37 years ending in 2053. (d) Comprises land lease of 44 years ending in 2060. Investment properties comprise a portfolio of commercial properties that are leased to external customers. Generally, the leases for the multi-tenanted buildings contain an initial non-cancellable period of 3 years. Subsequent renewals are negotiated with the lessees.

The accompanying notes form an integral part of these financial statements. OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others - 107 S$’000 31/03/2015 Valuation at Valuation 5,349,298 4,077,871 1,271,427 3,260,184 (2,089,114) t 2015/2016 r l Repo a S$’000 Annu 413,107 31/03/2016 Valuation at Valuation 5,922,457 1,256,271 4,253,079 3,416,187 (2,506,270) date Latest valuation 31/03/2016 31/03/2016 31/03/2016

- % 98.0 100.0 rates at 31/03/2015 Occupancy

% 96.8 100.0 100.0 rates at 31/03/2016 Occupancy - S$’000 74,700 281,144 206,444 Gross revenue revenue Gross for financial year ended 31/03/2015 S$’000 82,299 17,840 336,638 236,499 Gross revenue revenue Gross for financial year ended 31/03/2016 Commercial Commercial Commercial Existing use

rd

Ring Road North, Chaoyang District, Beijing, PRC Location No. 80, Tat Chee Avenue, Tat 80, No. Kong Hong Kowloon, Xiaguangli, 18 No. East 3 Blocks 5 and 9, 1 to 7 to 2290No. Zuchongzhi Road, Pudong New District, PRC Shanghai, 37 years 44 years 31years Remaining term of lease (b) (c) (d) Term of Term lease 50 years 50 years 54 years 07/03/2013 17/06/2015 07/03/2013 Acquisition date ong Kong eople’s he H he P RC”): P AR”): ong Kong S Kong ong The carrying amounts of the investment properties were based on independentLimited Cushman (2015: full & Wakefield valuationsValuation March as 31 March at 31 undertakenAdvisory (2015: 2015) 2016 Services by Colliers International(HK) Ltd), an independentcategory (Hong Kong) valuer. of the propertiesColliers has beingappropriate valued. professional The full valuations qualifications of the investment and propertiesexperience in were the based locationsComprises on discounted and land cashflow lease yearsmethod of 31 endingand term inand 2047. reversion analysis. Comprises land lease of years 37 ending in 2053. Comprises land lease of 44 years ending in 2060. H pecial Administrative Region of the eople’s Republic of China China of Republic eople’s

nvestment property in T nvestment property in T Investment properties comprise a portfolio of commercial properties that are leased to external customers. Generally, the leases for the multi-tenanted buildings contain an initial non-cancellable non-cancellable initial an contain buildings multi-tenanted the for leases the Generally, customers. external to leased are that properties commercial portfolio of a comprise properties Investment period of 3 years. Subsequent renewals are negotiated with the lessees. Description of leasehold property Description of leasehold I S P (“ I (“ China of Republic PlazaGateway Sandhill Plaza Investment properties - Group Other assets and liabilities - Group (net) Net assets attributable Unitholders to Notes: (a) (b) (c) (d) Festival Walk Festival 108 Mapletree Greater China Commercial Trust

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2016

These notes form an integral part of and should be read in conjunction with the accompanying financial statements.

1. General Mapletree Greater China Commercial Trust (“MGCCT”) is a Singapore-domiciled Real Estate Investment Trust constituted pursuant to the Trust Deed dated 14 February 2013 between Mapletree Greater China Commercial Trust Management Ltd. (as Manager) and DBS Trustee Limited (as Trustee). The Trust Deed is governed by the laws of the Republic of Singapore.

MGCCT was formally admitted to the Official List of the Singapore Exchange Securities Trading Limited (“SGX-ST”) on 7 March 2013 and was approved for inclusion under the Central Provident Fund (“CPF”) Investment Scheme on 23 January 2013.

The principal activity of MGCCT and its subsidiaries (the “Group”) is to invest, directly or indirectly, in a diversified portfolio of income-producing real estate in the Greater China region. It focuses primarily on commercial assets (predominantly for retail and/or office use), as well as real estate-related assets. It has the primary objective of achieving an attractive level of return from rental income and for long-term capital growth.

MGCCT has entered into several service agreements in relation to the management of MGCCT and its property operations. The fee structures for these services are as follows:

(A) trustee’s fees The Trustee’s fees shall not exceed 0.1% per annum of the value of all the assets of MGCCT (“Deposited Property”) (subject to a minimum of S$15,000 per month) or such higher percentage as may be fixed by an Extraordinary Resolution of a meeting of Unitholders. The Trustee’s fees are payable out of the Deposited Property of MGCCT monthly, in arrears. The Trustee is also entitled to reimbursement of expenses incurred in the performance of its duties under the Trust Deed.

Based on the current arrangement between the Manager and the Trustee, the Trustee’s fees are charged on a scaled basis of up to 0.02% per annum of the value of the Deposited Property (subject to a minimum of S$15,000 per month). The Trustee will also be paid a one-time inception fee as may be agreed between the Trustee and the Manager, subject to a maximum of S$60,000.

(B) management fees The Manager or its nominees are entitled to receive the following remuneration:

(i) a base fee of 10.0% per annum of the Distributable Income or such higher percentage as may be approved by an Extraordinary Resolution of a meeting of Unitholders; and

(ii) a performance fee of 25.0% of the difference in Distribution per Unit (“DPU”) in a financial year with the DPU in the preceding financial year (calculated before accounting for the performance fee in each financial year) multiplied by the weighted average number of units in issue for such financial year, or such higher percentage as may be approved by an Extraordinary Resolution of a meeting of Unitholders.

The management fees payable to the Manager or its nominees will be paid in the form of cash or/and Units.

Where the management base fees are paid in cash, the amounts are paid monthly, in arrears. Where the management base fees are paid in the form of Units, the amounts are paid quarterly, in arrears.

The management performance fees are paid annually in arrears, whether in the form of cash or/and Units. OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others 109 t 2015/2016 r l Repo a Annu anagement Agreement anagement roperty M roperty or less; and for the propertymanagement fee in that financial period); and receive a fee equal all of 20% fees to payable such to third party service provider for supervising and overseeing the services rendered the by third party service Such provider. services shall include, but not studies. impact environmental and work planning retail work, planning master to, limited • gross rent inclusive 1 month’s up to service of charge for securing a renewal tenancy more of than 3 years. The Property Manager is not entitled the marketing to services commissions if such service is (i) performed by staff the of asset holding company or (ii) performed third by party service providers. The marketing services commissions will be paid in the form Units cash of the (as Manager or/and may in its determine). discretion sole Marketing services Under the Property Management Agreement, will the pay the Trustee Property the Manager, following commissions: • gross rent inclusive 1 month’s up to service of charge for securing a tenancy 3 years of or less; • 2 months’ up gross to rent inclusive service of charge for securing a tenancy more of than 3 years; • gross rent inclusive month’s 0.5 up to service of charge for securing a renewal tenancy of 3 years of • where any service is provided a third by party service the Property provider, Manager will be entitled to The property management fees will be paid in the form Units cash of the (as Manager or/and may in its sole determine). discretion Property management services management Property willThe pay Mapletree Trustee Greater China Property Management Limited (the “Property Manager”), for each Fiscal defined (as Year in the Property Management Agreement), thefollowing fees: • per annum 2.0% the of gross revenue for the relevant property; • per annum 2.0% the of net property income (“NPI”) for the relevant property (calculated before accounting an acquisition fee not exceeding 0.75% and 1.0% of the of acquisitionan acquisition and 1.0% price fee any not of exceeding Authorised 0.75% Investments (as Trustdefined Deed) in the from RelatedParties and allother acquisitions respectively, acquired directly or MGCCT’s of proportion the to applicable if pro-rated (“SPV”), Special Vehicles more or one through indirectly, and interest; a divestment fee not the exceeding of sale price 0.5% any of Authorised Investments, sold or divested directly or indirectly through one or more pro-rated SPVs, if applicable the proportion to interest. MGCCT’s of (continued) al

(ii) (i) Fees under the P the under Fees (ii) The acquisition and disposal fee will be paid in theform Units cash of and or/and is payable as soon as practicable after completion the of acquisition and disposal respectively. Acquisition and Divestment fee The Manager or its nominees are entitled receive to the following fees: (i) er

(D) (C) n Ge 1. 110 Mapletree Greater China Commercial Trust

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2016

1. General (continued) (D) Fees under the Property Management Agreement (continued) (iii) Project management services The Trustee will pay the Property Manager a project management fee subject to:

• a limit of up to 3.0% of the total construction costs incurred for the development or redevelopment, the refurbishment, retrofitting and renovation works on a property; and

• an opinion issued by an independent quantity surveyor, to be appointed by the Trustee upon recommendation by the Manager, that the project management fee is within market norms and reasonable range.

The project management fees will be paid in the form of cash or/and Units (as the Manager may in its sole discretion determine).

(iv) Staff costs reimbursement The Property Manager takes over the central management team of Festival Walk and also employs the persons to run the ice rink business of Festival Walk. The Property Manager is entitled to the following:

• reimbursement for the cost of employing the centre management team of Festival Walk and the persons to run the ice rink business of Festival Walk; and

• 3.0% of such employment cost.

The staff costs reimbursement will be paid in the form of cash.

2. Significant accounting policies 2.1 Basis of preparation The financial statements have been prepared in accordance with the Statement of Recommended Accounting Practice 7 (“RAP 7”) “Reporting Framework for Unit Trusts” issued by the Institute of Singapore Chartered Accountants, the applicable requirements of the Code on Collective Investment Schemes (“CCIS”) issued by the Monetary Authority of Singapore (“MAS”) and the provisions of the Trust Deed. RAP 7 requires that accounting policies adopted should generally comply with the recognition and measurement principles of Singapore Financial Reporting Standards (“FRS”).

These financial statements, which are expressed in Singapore Dollars and rounded to the nearest thousand, have been prepared under the historical cost convention, except as disclosed in the accounting policies below.

The preparation of financial statements in conformity with RAP 7 requires Management to exercise its judgement in the process of applying the Group’s accounting policies. It also requires the use of certain critical accounting estimates and assumptions. Information about an area involving a higher degree of judgment, where assumptions and estimates are significant to the financial statements, is disclosed in Note 13 - Investment Properties. The assumptions and estimates were used by the independent valuers in arriving at their valuations.

Interpretations and amendments to published standards effective in 2015 On 1 April 2015, the Group adopted the new or amended FRS and Interpretations to FRS (“INT FRS”) that are mandatory for application for the financial year. Changes to the Group’s accounting policies have been made as required, in accordance with the relevant transitional provisions in the respective FRS and INT FRS.

The adoption of these new or amended FRS and INT FRS did not result in substantial changes to the accounting policies of the Group and MGCCT and had no material effect on the amounts reported for the current or prior financial years. OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others 111 t 2015/2016 r l Repo a Annu (continued) s e olici p ing t n u acco t Rental income and service charge from operating leases Rental income and service charge from operating leases any of (net incentives given the lessees) to on investment properties are recognised on straight-line a basis over the lease term. Contingent rents, which include turnover rental income, are recognised as income Return in Statement when Total of earned. Interest income Interest income is recognised on a time proportion basis using the effective interest method. income Dividend Dividend income is recognised when the right receive to payment is established. Property operating expenses Property operatingexpenses are recognised on an accrual basis. Included in property operating expenses are Property Manager’s fees which are based on the applicable formula stipulated in 1(D). Note fees Management Management fees are recognised on an accrual basis using the applicable formula stipulated in 1(B). Note feesTrustee’s fees are recognisedTrustee’s on an accrual basis using the applicable formula stipulated in 1(A). Note

evenue recognition xpenses Income tax Income onTaxation the return for the financial period comprises current and deferred income tax. Income tax is recognised in the Return. Statements Total of Current income tax for the current and prior periods is recognised at the amount expected be paid to be or to recovered from the tax authorities, using tax rates enacted or substantively enacted the by reporting date. Borrowing costs Borrowing costs are recognised in the Return Statements using Total of the effective interest method, except for those costs that are directly attributable the construction to or development properties. of This includes those costs on borrowings acquired specificallyfor the construction or developmentof properties, wellas as those in relationto general borrowings used finance to the construction or developmentof properties. The actual borrowing costs incurred during the financial periodto the up issuancetemporaryof the occupation permit less any investment income on temporary investment these of borrowings, are capitalised in the cost the of property under development. Borrowing costs on general borrowings are capitalised applying by a capitalisation to rate construction or development expenditure that are financedby general borrowings. (b) (c) (b) (c) Revenue comprises the fair value the of consideration received or receivable for the rendering services of and is presented net goods of and services tax, rebates and discounts. The Group recognises revenue when the amount revenueof and related cost can be reliably measured, it is probable that the collectability the of related receivables is reasonably assured and when the specific criteriafor activitieseachof the Group’s are met follows:as (a) (a)

E ignifican 2.3 2.4 2.5 2.2 r S

2. 112 Mapletree Greater China Commercial Trust

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2016

2. Significant accounting policies (continued) 2.5 Income tax (continued) Deferred income tax is recognised for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements except when the deferred income tax arises from initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.

A deferred income tax liability is recognised on temporary differences arising on investment in subsidiaries except where the Group is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future.

A deferred income tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilised.

Deferred income tax is measured:

(i) at the tax rates that are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the reporting date; and

(ii) based on the tax consequence that will follow from the manner in which the Group expects, at the reporting date, to recover or settle the carrying amounts of its assets and liabilities except for investment properties. Investment property measured at fair value is presumed to be recovered entirely through sale.

Current and deferred income taxes are recognised as income or expense in the Statement of Total Return, except to the extent that the tax arises from a business combination or a transaction which is recognised directly in equity.

Except for the tax exemption as described below, taxable income earned by the Trust will be subject to Singapore income tax at the Trustee level at the prevailing corporate tax rate.

The Trustee is exempted from Singapore income tax under Section 13(12) of the Singapore Income Tax Act (“SITA”) on the dividend income from its subsidiaries in Cayman out of underlying rental income derived from the investment properties in Hong Kong SAR and PRC. This exemption is granted subject to certain conditions.

The Trustee is also exempted from Singapore income tax under Section 13(8) of the SITA on the dividends received from the Hong Kong Treasury Company provided that the underlying income is subject to profits tax in Hong Kong SAR and the highest rate of profits tax rate in Hong Kong SAR at the time the income is received in Singapore is not less than 15.0%.

The tax exemption also applies to dividend income from the Trust’s subsidiaries out of gains, if any, derived from disposal of shares in the subsidiaries unless the gains are considered income of trade or business. Gains arising from the sales in subsidiaries, if considered to be trading gains, will be assessed to tax, currently at 17%, on the Trust under Section 10(1)(a) of the SITA.

Any return of capital received by the Trust from these subsidiaries is capital in nature and hence, is not taxable in the hands of the Trustee. OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others 113 t 2015/2016 r l Repo a Annu (continued) s e olici p ing t n Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed or hasrights variable to, to, returns from its involvement with the entity and has the ability affect to those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred the Group. to They are deconsolidated from the date on that control ceases. In preparing the consolidated financial statements, transactions, balances and unrealised gains on transactions between group entities are eliminated. Unrealised losses are also eliminated but are considered an impairment indicator the of asset transferred. Accounting policies subsidiaries of have been changed where necessary ensure to consistency with the policies adopted the by Group. The acquisition method accounting of is used account to for business combinations the by Group. The consideration transferred for the acquisition a subsidiary of comprises the fair value the of assets transferred, the liabilities incurred and the equity interests issued the by Group. The consideration transferred also includes any contingent consideration arrangement and any pre-existing equity interest in date. acquisition the at values fair their at subsidiary measured the Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. acquiree the in interest non-controlling any recognises Group the basis, acquisition-by-acquisition an On at the acquisition date of either at fair value or at the non-controlling proportionate interest’s share the of netacquiree’s identifiable assets. The excess the of consideration transferred, the amount any of non-controlling interest in the acquiree and the acquisition-date fair value any of previous equityinterest in the acquiree over the fair value the of net identifiable assets acquired is recorded as goodwill. When a change ownership in MGCCT’s interest in a subsidiary results in a loss control of over the subsidiary, the assets and liabilities the of subsidiary including any goodwill are derecognised. Any retained interest in the entity is re-measured at fair value. The difference between the carrying amount theof retained investment at the date when control is lost and its fair value is recognised in the Statements Return. Total of Please refer the paragraph to “Investments in subsidiaries”, for the accounting policy on investments in subsidiaries in the separate financial 2.7) (Note statementsof MGCCT. Disposals u acco t Acquisitions Consolidation (i) (ii) (iii) Subsidiaries Subsidiaries Group accounting Group (a)

ignifican 2.6 S

2. 114 Mapletree Greater China Commercial Trust

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2016

2. Significant accounting policies (continued) 2.7 Investments in subsidiaries Investments in subsidiaries are stated at cost less accumulated impairment losses (Note 2.10) in MGCCT’s Statement of Financial Position. On disposal of investments in subsidiaries, the difference between net disposal proceeds and the carrying amount of the investment are recognised in the Statements of Total Return.

2.8 Investment properties Investment properties are properties held either to earn rental income and/or capital appreciation.

Investment properties are accounted for as non-current assets and initially recognised at cost on acquisition, and subsequently carried at fair value. Fair values are determined in accordance with the Trust Deed, which requires the investment properties to be valued by independent registered valuers at least once a year, in accordance with CCIS. Changes in fair values are recognised in the Statements of Total Return.

Investment properties are subject to renovations or improvement from time to time. The cost of major renovations and improvement are capitalised and the carrying amounts of the replaced components are written off to the Statements of Total Return. The costs of maintenance, repairs and minor improvements are recognised in the Statements of Total Return when incurred.

On disposal of an investment property, the difference between the net disposal proceeds and the carrying amount is taken to the Statements of Total Return.

If an investment property becomes substantially owner-occupied, it is reclassified as property, plant and equipment, and its fair value at the date of reclassification becomes its cost for accounting purposes.

2.9 plant and equipment (a) Measurement All plant and equipment are initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses.

The cost of an item of plant and equipment includes its purchase price and any costs that are directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by Management.

(b) Depreciation Depreciation on plant and equipment is calculated using the straight-line method to allocate their depreciable amounts over their estimated useful lives. The estimated useful lives are as follows:

Useful lives Computer equipment 5 years Other fixed assets 3 to 5 years

The residual values and estimated useful lives of plant and equipment are reviewed, and adjusted as appropriate, at each reporting date. The effects of any revision are included in the Statements of Total Return for the financial period in which the changes arise. OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others 115 t 2015/2016 r l Repo a Annu (continued) s e olici p ing t n u acco t Subsequent expenditure Subsequent Subsequent expenditure relating plant to and equipment that has already been recognised is added the to carrying amount the of asset only when it is probable that future economic benefits, excessin of the originally assessed standard performance of the of existing asset, willto the flow Group and the cost can be reliably measured. Other subsequent expenditure is recognised as an expense during the financial period in which incurred. is it On disposal an of item plant of and equipment, the difference between the net disposal proceeds and its carrying amount is taken the Return. Statements to Total of Disposal

lant and equipment (continued) and lant Financial assets assets Financial Loans and receivables are non-derivative financial assets with fixed or determinablepayments that arenot quoted in an active market. They are presented as current assets, except for those expected be realised to months later than 12 after the reporting which date, are presented as non-current assets. Loans and receivables are presented as “cash and bank “trade balances”, and other receivables” for (except accrued and revenue), “other current assets” for (except prepayments) on the Statements Financial of Position. These financial assets are initially recognised at fairvalue plus transaction costs and subsequently carried at amortised cost using the effective interest method, less accumulated impairment losses. Inventories are carried at the lower cost of and net realisable value. Cost represents average unit cost purchase of and net realisable value is the estimated selling price in the ordinary course business, of less applicable variable selling expenses. (c) (d) non-financial assets of Impairment equipment and Plant Investments in subsidiaries Plant and equipment and investments in subsidiaries are tested for impairment whenever thereis any objective evidence or indication that these assets may be impaired. For the purpose impairment of testing, the recoverable amount the higher (i.e. the of fair value less cost sell to and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash inflows that are largely independent those of from other assets. If this is the case, the recoverable amount is determined for the Cash Generating Unit (“CGU”) which to the asset belongs. If the recoverable amount the of asset CGU) (or is estimated be less to than its carrying amount, the carrying amount theof asset CGU) (or is reduced its recoverable to amount. The difference between the carrying amount and recoverable amount is recognised as an impairment loss in the Return. Statements Total of An impairment loss for an asset is reversed only there if, has been a change in the estimates used determine to the recoverableasset’s amount or if there is a change in the events that had given rise the impairment to since the last impairment loss was recognised. The carrying amount this of asset is increased its revisedto recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined any (net of financial prior in asset the for been recognised loss impairment no had depreciation) or amortisation accumulated period. A reversal impairment of loss for an asset is recognised in the Return. Statements Total of

Inventories p ignifican 2.10 2.12 2.11 2.9 S

2. 116 Mapletree Greater China Commercial Trust

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2016

2. Significant accounting policies (continued) 2.12 Financial assets (continued) The Group assesses at each reporting date whether there is objective evidence that these financial assets are impaired and recognises an allowance for impairment when such evidence exists.

Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy and default or significant delay in payments are objective evidence that these financial assets are impaired.

The carrying amount of these assets is reduced through the use of an impairment allowance account which is calculated as the difference between the carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. When the asset becomes uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are recognised against the same line item in the Statements of Total Return.

The impairment allowance is reduced through the Statements of Total Return in a subsequent financial period when the amount of impairment loss decreases and the related decrease can be objectively measured. The carrying amount of the asset previously impaired is increased to the extent that the new carrying amount does not exceed the amortised cost had no impairment been recognised in prior financial periods.

2.13 Cash and cash equivalents Cash and cash equivalents include cash balances and deposits with financial institutions.

2.14 Borrowings Borrowings are presented as current liabilities unless the Group has an unconditional right to defer settlement for at least 12 months after the reporting date, in which case they are presented as non-current liabilities.

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the Statements of Total Return over the period of the borrowings using the effective interest method.

2.15 trade and other payables Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of the financial year which are unpaid. They are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). Otherwise, they are presented as non-current liabilities.

Trade and other payables are initially measured at fair value, and subsequently at amortised cost, using the effective interest method.

2.16 Derivative financial instruments and hedging activities The Group uses derivative financial instruments such as interest rate swaps, cross currency interest rate swaps and forward foreign currency contracts to hedge its exposure to interest rate risks and currency risks arising from operational, financing and investment activities. In accordance with its treasury policy, which is in line with the CCIS, the Group does not hold or issue derivative financial instruments for trading purposes.

Derivative financial instruments are recognised initially at fair value on the date the contracts are entered into and are subsequently carried at their fair value.

The Group documents at the inception of the transaction the relationship between the hedging instruments and hedged items, as well as its risk management objective and strategies for undertaking various hedge transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives designated as hedging instruments are highly effective in offsetting changes in cash flows of the hedged items. OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others 117 t 2015/2016 r l Repo a Annu (continued)

(continued) s e olici p ing t n Interest rate swaps The Group has entered interest into swaps rate that are cash flow hedgesexposure for theto Group’s interest risk rate on its borrowings. These contracts entitle the Group receive to interest at floating rates on notional principal amounts and oblige the Group pay interest to at fixed rates on the same notional principal amounts, thus allowing the Group raise to borrowings at floating rates and swap them into fixed rates. The fair value changes on the effective portion interest of swaps rate designated as cash flow hedges are recognised in the hedging reserve and transferred the Return Statements to when Total of the interest expense on the borrowings is recognised in the Return. Statements The Total fair of value changes on the ineffective portion interest of swaps rate are recognised immediately in the Return. Statements Total of Cross currency interest rate swaps The Group has entered cross into currency interest swaps rate that are cash flow hedges and are usedto reduce exposure the interestGroup’s to risk rate and currency risk on its borrowings and interest. The fair value changes on the effective portion cross of currency interest swaps rate designated as cash flow hedges are recognised in the hedging reserve and transferredTotalto the Return Statements of when the interest expense on the borrowings or the exchange differences arising from the translation of the borrowings is recognised in the Return. Statements The Total fair of value changes on the ineffective portion cross of currency interest swaps rate are recognised immediately in the Return. Statements Total of Forward currency contracts currency Forward MGCCT has entered forward into currency contracts that qualify as cash flow hedges at MGCCT level against highly probable forecasted transactions in foreign currencies. The fair value changes on the effective portion the of forward currency contracts designated as a cash flow hedges are recognised in the hedging reserve and transferred the Return Statements to when Total of the hedged forecast transactions are recognised. The fair value changes on the ineffective portion currency of forwards are recognised immediately the Return. Statements to Total of

u acco t Derivatives that are not designated or do not qualify for hedge accounting Fair value changes on these derivatives, as well as the forward currency contracts which do not qualify for hedge accounting at Group level, are recognised in the Return Statements when Total of the changes arise. (ii) (iii) Cash flow hedge (i) Fair value estimation of financial assets and liabilities The carrying amounts current of financial assets and liabilities carried at amortised cost approximate their fairvalues. The fair values financial of instruments that are tradednot in an active market(for example, over-the-counter derivatives) are determined using by valuation techniques. The fair values forward of currency contracts are determined using actively quoted forward currency rates at the reporting The date. fair values interest of swaps rate and cross currency interest swaps rate are calculated as the present value the of estimated future cash flows, discounted at actively quoted interest rates. (b) Derivative financial instruments and hedging activities hedging and instruments financial Derivative The carrying amount a derivative of designated as a hedge is presented as a non-current asset or liability if the remaining expected life the of hedged months item is more and than as a current 12 asset or liability if the remaining expected life the of hedged item is less months. than 12 (a)

ignifican 2.17 2.16 S

2. 118 Mapletree Greater China Commercial Trust

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2016

2. Significant accounting policies (continued) 2.18 Operating leases When the Group is a lessor: Leases of investment properties where the Group retains substantially all risks and rewards incidental to ownership are classified as operating leases. Rental income from operating leases (net of any incentives given to the lessees) is recognised in the Statements of Total Return on a straight-line basis over the period of the lease.

2.19 Provisions Provisions are recognised when the Group has a present legal or constructive obligation as a result of a past event where it is probable that such obligation will result in an outflow of economic benefits that can be reasonably estimated.

2.20 Currency translation (a) Functional and presentation currency Items included in the financial statements of each entity in the Group are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The consolidated financial statements are presented in Singapore Dollars, which is MGCCT’s functional currency.

(b) Transactions and balances Transactions in a currency other than the functional currency (“foreign currency”) are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Currency translation gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the closing rates at the reporting date are recognised in the Statements of Total Return, except for currency translation differences on the net investment in foreign operations, borrowings in foreign currencies and other currency instruments qualifying as net investment hedges for foreign operations, which are included in the foreign currency translation reserve within the Statements of Movements in Unitholders’ Funds of the Group.

(c) Translation of Group entities’ financial statements The results and financial position of all the group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

(i) Assets and liabilities are translated at the closing rates at the reporting date;

(ii) Income and expenses are translated at average exchange rates (unless the average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated using the exchange rates at the dates of the transactions); and

(iii) All resulting exchange differences are taken to the foreign currency translation reserve within the Statements of Movements in Unitholders’ Funds.

(d) Consolidation adjustments On consolidation, currency translation differences arising from the net investment in foreign operations, borrowings in foreign currencies, and other currency instruments designated as hedges of such investments, are taken to the foreign currency translation reserve. When a foreign operation is sold, such currency translation differences recorded in the foreign currency translation reserve are recognised in the Statements of Total Return as part of the gain or loss on sale. OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others 119 659 2015 2015 S$’000 S$’000 8,421 3,210 4,798 7,121 10,808 51,834 12,185 11,753 37,932 236,091 281,144 t 2015/2016 r Group Group l Repo 934 2016 2016 a S$’000 S$’000 9,195 3,553 4,983 7,778 13,503 59,172 13,274 13,730 43,540 285,320 336,638 Annu (continued) s s e ns e olici p ing expe t n ing t a ue per n u acco t reve nits and unit issuance expenses Proceeds from the issuance Units of in MGCCTare recognised as Unitholders’ funds. Incremental costs directly attributable the issuance to new of Units arededucted directly from the net assets attributable the Unitholders. to reporting Segment Operating segments are reported in a manner consistent with the internal reporting provided Management to who is responsible for allocating resources and assessing performance the of operating segments. Distribution policy distributionMGCCT’s policy distribute, is to on a semi-annual basis, at least its of distributable 90.0% income, comprising substantially its income from the letting its of properties and related property services income after deduction allowable of expenses and allowances, and its of tax-exempt income (if any). perty o

oss o ignifican 2.22 2.23 2.21 u S Property and lease management fees Property and other taxes Other operating expenses dailyThe operations Group’s and administrative functions are provided the by Manager and Property Staff Manager. costs include reimbursements paid/payable the Property to Manager in respect agreed of employee expenditure incurred the by Property Manager for providing its services as provided in the Property Management Agreement. investmentAll the of Group’s properties generate rental income and the above expenses are direct operating expenses arising therefrom. Staff costs (including defined contribution plans) Professional fees Utilities and property maintenance Marketing and promotion expenses Other operating income Other operating Rental income Rental Service charges The turnover rental income recognised as revenue duringS$12,643,000). the financial(2015: year was S$15,088,000 Other operating income comprises car park revenue and other income attributable the operations to the of properties, such as additional air-conditioning and chilled water charges, ice rinkincome, rental from event space, and refuse compactor charge. Gr pr

3. 2. 4. 120 Mapletree Greater China Commercial Trust

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2016

5. Other trust expenses

Group MGCCT 2016 2015 2016 2015 S$’000 S$’000 S$’000 S$’000

Consultancy and professional fees 369 318 74 66 Valuation fees 32 25 - - Other trust expenses 1,818 2,168 1,303 1,626 2,219 2,511 1,377 1,692

Total fees to auditors included in other trust expenses are as follows:

Group MGCCT 2016 2015 2016 2015 S$’000 S$’000 S$’000 S$’000

Auditors’ remuneration 271 256 46 36 Non-audit fees 64 90 - - 335 346 46 36

Auditors of the Group comprised of the network of member firms of PricewaterhouseCoopers International Limited and KPMG.

6. Finance costs

Group 2016 2015 S$’000 S$’000

Interest expense 46,970 31,926 Cash flow hedges, reclassified from hedging reserve (Note 19) 9,916 1,646 Financing fees * 8,122 7,270 65,008 40,842

* Includes legal fees of S$79,000 (2015: S$100,000).

7. Income tax (a) Income tax expense

Group MGCCT 2016 2015 2016 2015 S$’000 S$’000 S$’000 S$’000

Tax expense attributable to current financial year’s results is made up of: Current income tax - Singapore 35 12 35 12 - Foreign 15,138 13,599 - - 15,173 13,611 35 12 Withholding tax - Foreign 8,758 7,626 - - 23,931 21,237 35 12 Deferred tax (Note 18) 13,878 12,582 - - 37,809 33,819 35 12 Under provision in preceding financial years Current income tax - Foreign 34 - - - 37,843 33,819 35 12 OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others ------8 121 12 20 12 2015 2015 2015 S$’000 S$’000 4.904 4,285 22,546 (26,819) 132,612 132,624 2,704,274 t 2015/2016 r ------MGCCT MGCCT MGCCT 20 35 55 35 l Repo 2016 2016 2016 a S$’000 S$’000 5.074 4,496 23,633 (28,094) 138,982 139,017 Annu 2,739,167 - - - - (33) 2015 2015 2015 (272) S$’000 S$’000 6,573 4,662 11.811 35,496 60,047 21,237 34,769 33,819 (26,626) (22,140) (10,356) 319,399 353,218 2,704,274 - Group Group Group 34 2016 2016 2016 (698) (129) S$’000 S$’000 5,114 (1,527) (7,715) (2,698) (7,455) 15.629 34,769 79,210 23,931 35,257 37,843 (21,252) (28,484) 428,101 465,944 2,739,167 t ni x (continued) a Expenses not deductible for tax purposes Income not subject tax to Gain on revaluation investment of properties not subject tax to Income not subject tax to due tax to transparency ruling (Note 2.5) Recognition of tax losses previously unrecognised tax previously losses of Recognition Different tax rates in other countries ovements in current incometax liabilities

me t Income tax expense (continued) The income tax expense onthe results for the financialyear differs from the amount thatwould arise using the Singapore standard income of rate tax due the following: to Beginning of the financial year financial the Beginning of Total return for the financialTotal year before income tax Income tax paid Tax calculated at a tax rate of 17% (2015: 17%) calculated (2015: Tax at a tax 17% of rate Tax expense Effects of: - Utilisation tax of 18(a)) benefits (Note - Under provision in preceding financial years financial preceding in Under provision - Translation differences on consolidation differences on Translation - End the of financialyear - - - Others Tax charge Tax nings per u r the financialyear (’000) nco I (a) Diluted earnings per unit is the same as the basic earnings per unit as there are no dilutive instruments in issue during the year. financial Weighted average number units of outstanding during Basic and diluted earnings per unit (cents) Total return attributableTotal Unitholders to MGCCT of (S$’000) The calculation basic of earnings per unit is based on: (b) m 7. 8. eA 122 Mapletree Greater China Commercial Trust

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2016

9. Cash and bank balances

Group MGCCT 2016 2015 2016 2015 S$’000 S$’000 S$’000 S$’000

Cash at bank and on hand 191,975 113,110 90,861 75,588 Short-term bank deposits 14,132 12,000 - 12,000 206,107 125,110 90,861 87,588

Short-term bank deposits at the reporting date have a weighted average maturity of 6 (2015: 13) days from the end of the financial year. The effective interest rate at the reporting date is 1.35% (2015: 0.45%) per annum.

Included in S$206,107,000 was a cash receipt of RMB213,384,000 (equivalent to S$45,205,000), which was released from the People’s Republic of China (“PRC”) courts to a subsidiary company HK Gateway Plaza Company Limited (“HKGW”), relating to the resolution of the Litigation Action in the PRC courts between Beijing Bestride Real Estate Development Co. Ltd. and HKGW in favour of HKGW, as had been disclosed in the SGXNet Announcement dated 4 August 2015. This cash amount of RMB213,384,000 (equivalent to S$45,205,000) is due to be repaid to a related party, Mapletree India China Fund Ltd which has been included in Note 16.

There is a balance of RMB51,476,000 (equivalent to S$10,905,000) which continues to be held by the PRC courts pending a damages claim against Beijing Bestride Real Estate Development Co. Ltd. arising from the resolution of the Litigation Action.

Details of the Litigation Action can be found in pages 53-55 and 237 of MGCCT’s IPO Prospectus dated 27 February 2013.

Acquisition of subsidiaries On 17 June 2015, the Group acquired 100% of equity interest in Glamour II Limited and its subsidiaries (“Glamour Group”) for purchase consideration of S$412,972,000, which was fully funded by borrowings.

The principal activity of Glamour Group is that of property investment.

The cash flow and the net assets of subsidiaries acquired are provided below:

Glamour Group S$’000

2016 Group Plant and equipment 107 Investment properties 407,246 Current assets 21,008 Current liabilities (10,638) Borrowings (76,332) Net assets acquired 341,391 Less: Cash and cash equivalents in subsidiaries acquired (18,955) Cash outflow on acquisition of subsidiaries 322,436 OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others - - 2 2 (2) 123 12 323 2015 2015 (262) S$’000 S$’000 S$’000 (5,408) (2,636) (3,305) (2,638) 11,655 11,990 (14,106) (10,211) (29,987) (10,473) (19,514) (10,385) (16,328) (13,690) Liabilities t 2015/2016 r ------1 MGCCT MGCCT Fair value l Repo 368 2016 2016 a Assets S$’000 S$’000 S$’000 3,538 6,419 3,166 9,585 3,166 6,419 3,907 Annu - 59 651 737 796 2015 2015 S$’000 S$’000 S$’000 1,853 8,579 80,153 11,083 Contract 734,025 517,380 505,406 713,138 734,479 175,000 170,685 Group notional amount - Group Group 62 819 389 823 885 2016 2016 S$’000 S$’000 9,532 10,740 Maturity March 2017 March July 2018 - March 2019 July 2018 March - March 2020 2023 June 2016 - DecemberJune 2016 2016 March 2016 March March 2017 March September - March 2021 2022 April 2015 - March 2016 April 2015 s t n s e trume abl v i s e c et t ass n ther re ve financial ins urre i t a e and o v i ad Current position Current Non-current position Non-current Current position Current Non-current position Non-current r Deposits Trade receivables Trade Amounts due from subsidiaries (non-trade) revenue Accrued receivables Other Prepayments 2016 Cash flow hedges: Interest swaps rate (current) Interest swaps rate (non-current) (non-current) swaps rate interest currency Cross Non-hedging instruments: Non-hedging Currency forwards (current) Represented by: Represented 2015 Cash flow hedges: Interest swaps rate (current) Interest swaps rate (non-current) Cross currency interest rate swaps (non-current) swaps rate interest currency Cross Non-hedging instruments: Non-hedging Currency forwards (current) Represented by: Represented At 31 March 2016, the fixed interest rates on interest rate swaps vary from 1.15% to 3.70% (2015: 0.54% to 1.21%) 1.21%) to 0.54% (2015: 3.70% to the fixed interest March rates on 31 2016, interestAt swaps rate vary 1.15% from per annum.0.39%) per The annum fixed interest and the rates floating on(2015: cross 2.80% vary rate to 0.40% from per annum. 3.58%) to 3.25% currency (2015: 3.58% interest to swaps rate vary from 2.72% The amounts due from subsidiaries are unsecured, interest-free and repayable on demand. Other c Der 10. t 11. 12. 124 Mapletree Greater China Commercial Trust

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2016

12. Derivative financial instruments (continued)

MGCCT Fair value Contract notional amount Assets Liabilities Maturity S$’000 S$’000 S$’000

2016 Cash flow hedges: Currency forwards (current) June 2016 - December 2016 80,153 3,166 (2)

2015 Cash flow hedges: Currency forwards (current) April 2015 - March 2016 170,685 - (10,211)

Periods when the cash flows on cash flow hedges are expected to occur or affect Statements of Total Return (a) Interest rate swaps Interest rate swaps are transacted to hedge variable quarterly interest payments on borrowings that will mature on the respective maturity dates. Fair value changes on the interest rate swaps recognised in the hedging reserve are reclassified to the Statements of Total Return as part of finance expense over the period of the borrowings.

(b) Cross currency interest rate swaps Cross currency interest rate swaps are transacted to hedge:

(i) variable quarterly foreign currency interest payments on borrowings that will mature on the respective maturity dates; (ii) semi-annual foreign currency interest payments on borrowings that will mature on the respective maturity dates; and (iii) foreign currency principal payments at maturity of the borrowings.

Fair value changes on the cross currency interest rate swaps recognised in the hedging reserve are reclassified to the Statements of Total Return as part of finance expense and exchange differences over the period of the borrowings.

(c) Currency forwards At MGCCT level, fair value changes on currency forwards are recognised in the hedging reserve and transferred to the Statement of Total Return when the hedged forecast transactions are recognised.

Fair value changes on non-hedging instruments At Group level, fair value changes on currency forwards are recognised in the Statements of Total Return when the changes arise.

13. Investment properties

Group 2016 2015 S$’000 S$’000

Beginning of the financial year 5,349,298 4,722,070 Acquisition of subsidiaries 407,246 - Additions 12,855 4,974 Fair value changes 239,921 196,383 Translation difference on consolidation (86,863) 425,871 End of the financial year 5,922,457 5,349,298

Details of the properties are shown in the Portfolio Statement. OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others 125 PRC S$’000 S$’000 7,092 1,282 Level 3 67,288 62,203 94,802 (83,675) 407,246 4,253,079 1,669,378 4,077,871 1,271,427 1,271,427 1,669,378 1,113,140 1,271,427 t 2015/2016 Significant other r - unobservable inputs l Repo - - - - a S$’000 5,763 3,692 (3,188) 172,633 134,180 331,069 Annu S$’000 Level 2 4,077,871 4,253,079 3,608,930 4,077,871 Hong Kong SAR Relationship of unobservable inputs to fair value The higher the term and reversion the rate, lower the fair value. The higher the the higher The discount the rate, lower the fair value. Significant other observable inputs end of financial year using Fair value measurements at Fair value measurements - - - - S$’000 Level 1 identical assets Quoted prices in active markets for Range of unobservable inputs 4.5% - 6.5% 4.5% - 6.5%) 4.5% (2015: per annum 8.0% - 10.5% 8.0% (2015: - 8.5%) 7.75% per annum Unobservable inputs Term and reversionTerm rate Discount rate Discount s (continued) e i pert o t pr n tme s ve Commercial property in Hong Kong SAR Commercial properties in PRC Commercial property in Hong Kong SAR Commercial property in PRC econciliation of movements in Level 3 fair value measurements aluation techniques used to derive Level 3 fair values n I Fair value hierarchy 2016 Recurring fair value measurements Investment properties - - 2015 Recurring fair value measurements Investment properties - - R Term and reversionTerm approach Valuation techniques Valuation Fair value changes value Fair changes value Fair 2016 year financial the Beginning of Acquisitions of subsidiaries of Acquisitions Additions consolidation differences on Translation End the of financialyear 2015 year financial the Beginning of Additions consolidation differences on Translation End the of financialyear There were no changes in valuation techniques during the year. V Level 3 fair values properties the of Group’s have been generally derived using the term and reversion method and discounted cash flow method. termThe and reversion method and discounted cash flow methodinvolve the estimation of income and expenses, taking account into expected future changes in economic and social conditions, which may affect the value the of properties. Discounted cash flow approach cash flow Discounted 13. 126 Mapletree Greater China Commercial Trust

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2016

13. Investment properties (continued) Valuation processes of the Group The Group engages external, independent and qualified valuers to determine the fair value of the Group’s properties at the end of every financial year based on the properties’ highest and best use. As at 31 March 2016, the fair values of the properties have been determined by Colliers International (Hong Kong) Limited (2015: Cushman & Wakefield Valuation Advisory Services (HK) Ltd).

14. pLANt and equipment

Other Computer fixed equipment assets Total S$’000 S$’000 S$’000

Group 2016 Cost Beginning of the financial year 1,349 596 1,945 Acquisition of subsidiaries 56 51 107 Additions 145 557 702 Disposals/Write-offs - (5) (5) Translation difference on consolidation (2) (2) (4) End of the financial year 1,548 1,197 2,745

Accumulated depreciation Beginning of the financial year 864 78 942 Depreciation charge 276 187 463 Disposals/Write-offs - (5) (5) Translation difference on consolidation (2) (2) (4) End of the financial year 1,138 258 1,396

Net book value End of the financial year 410 939 1,349

2015 Cost Beginning of the financial year 969 251 1,220 Additions 294 380 674 Disposals/Write-offs - (57) (57) Translation difference on consolidation 86 22 108 End of the financial year 1,349 596 1,945

Accumulated depreciation Beginning of the financial year 378 61 439 Depreciation charge 422 64 486 Disposals/Write-offs - (57) (57) Translation difference on consolidation 64 10 74 End of the financial year 864 78 942

Net book value End of the financial year 485 518 1,003 OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others ------4 % 127 55 77 100 100 2015 2015 2015 S$’000 S$’000 10,706 10,842 10,842 799,285 1,601,002 2,400,287 % Proportion of ordinary t 2015/2016 shares held shares 100 100 100 by the Group 2016 r ------MGCCT MGCCT 55 22 l Repo 2016 2016 - a % S$’000 S$’000 12,669 12,746 12,746 100 100 2015 Annu 1,075,836 1,312,520 2,388,356 % by parent - - directly held held directly 100 100 100 2016 roportion of Proportion ordinary shares ordinary 506 2015 S$’000 6,567 2,616 1,582 3,051 23,648 38,376 66,384 76,346 142,730 - Group 2016 S$’000 5,027 1,164 7,064 2,089 3,086 31,909 51,575 45,205 62,387 147,119 209,506 Hong Kong SAR Hong Kong SAR Republic People’s China of Country of business/ incorporation Principal activities Property investment Property investment Property investment (b) s s ie e r abl (a) y a bsidia u (c) s in ther p s t n tme e and o s ad ve Audited by PricewaterhouseCoopers, Hong Kong Hong PricewaterhouseCoopers, by Audited Tian Zhong PricewaterhouseCoopers by Audited Audited by KPMG, Hong Kong Company Limited on-current r

In (a) (b) (c) Festival Walk (2011) Limited Festival Walk (2011) Current payables Trade Name of subsidiary Equity investments at cost subsidiaries to Loans The loans subsidiaries to areunsecured, interest-free with no fixed repaymentterms and are intendedto be a long-term source additional of capital for the subsidiaries. Settlement these of loans is neither planned nor likely occur to in the foreseeable future. As a result, the Manager considers these loans be part to the of Company’s net investment in the subsidiaries and has accounted for these loans in accordance with 2.7. Note The Group has the followingsignificant subsidiaries31 Marchand2015: 31 March 2016 as at expenses operating Accrued Amounts due subsidiaries to (non-trade) depositsTenancy and advance rental deposits Other payable Interest payables Other Amounts due related to parties (trade) Amount due a related to party (non-trade) 9) (Note HK Plaza Gateway Company Limited Shanghai Zhan Xiang Real Estate N depositsTenancy and advance rental The amounts due subsidiaries to and related parties are unsecured, interest-free and repayable on demand.

16. t 15. 128 Mapletree Greater China Commercial Trust

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2016

17. Borrowings

Group 2016 2015 S$’000 S$’000

Current Bank loans 464,512 276,790 Unamortised transaction costs (2,128) (3,128) 462,384 273,662 Non-current Bank loans 1,474,723 1,447,618 Unamortised transaction costs (6,421) (9,133) 1,468,302 1,438,485

Medium-term notes 492,746 272,816 Unamortised transaction costs (1,171) (1,000) 491,575 271,816 1,959,877 1,710,301

2,422,261 1,983,963

(a) the above unsecured borrowings consist of: (i) Bank loans that mature between 2016 and 2021 (2015: 2015 and 2018). The weighted average effective interest rate of the bank loans at the reporting date was 1.98% (2015: 1.70%) per annum.

(ii) Medium-term notes that mature between 2020 and 2023 (2015: 2020 and 2022). The weighted average effective interest rate of the medium-term notes at the reporting date was 3.39% (2015: 3.14%) per annum.

(b) Interest rate risks The exposure of the borrowings of the Group to interest rate changes and the contractual repricing dates at the reporting dates (before taking into account the derivatives to swap the floating rates to fixed rates) are as follows:

Variable rates Fixed rates less than Fixed rates more than 6 months 1 to 5 years 5 years Total S$’000 S$’000 S$’000 S$’000

Group 2016 Borrowings 1,930,686 97,495 394,080 2,422,261

2015 Borrowings 1,712,147 97,497 174,319 1,983,963

(c) Carrying amounts and fair values The carrying amount of the current and non-current bank loans, which are at variable market rates, approximate their fair values at the reporting date.

The fair value of the non-current fixed-rate medium-term notes is S$497,286,000 (2015: S$273,160,000), of which Nil (2015: S$175,344,000) is within Level 1 of the fair value hierarchy. S$497,286,000 (2015: S$97,816,000) is within Level 2 of the fair value hierarchy, which is determined from adjusted quoted prices or cash flow analysis discounted at market borrowing rates of equivalent instruments of 2.44% (2015: 2.80%) at the reporting date at which the Manager expects is available to the Group. OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others - 129 2015 S$’000 247,771 t 2015/2016 r - Group l Repo 2016 a S$’000 168,506 Annu (continued) S$75.0 million (2015: S$75.0 million) that matures S$75.0 on 8 September and million bears 2021 (2015: S$75.0 an interest per 3.20% of annum payable semi-annually in arrears; HK$550.0 million) February that maturesHK$550.0 million on and 11 2020 bears (2015: an interest per 2.80% of annum payable quarterly in arrears; million) that matures S$100.0 on 9 March and 2022 million bears (2015: S$100.0 an per interest annum 3.43% of arrears; in semi-annually payable Nil) that matures million on 9 November (2015: andS$100.0 2022 bears an interest per 3.96% of annum payable and arrears; in semi-annually Nil) that matures million on March 22 and 2023 (2015: bearsS$120.0 an interest per 3.50% of annum payable arrears. in semi-annually ings w edium-termnotes ndrawn committed borrowing facilities o (ii) (iii) (iv) (v) In May 2013, the Group establishedIn May 2013, Euro Medium a US$1,500,000,000 Securities Term Programme (“MTN Programme”) viaits subsidiaries, Mapletree Greater China Commercial Treasury Company and Trust Pte. Ltd. (S) Mapletree Greater China Commercial Treasury Company (HKSAR) Limited, together with the MGCCT Trustee, collectively, the Under “Issuers”. the MTN Programme, the Issuers subject compliance may, to with all relevant laws, regulations and directives, from time time to issue notes or perpetual securities in series or tranches in Singapore Dollars or any other currency (“MTN”). Each series or tranche notes of may be issued in various amounts and tenors, and may bear fixed, floating or variable rates interest. of Hybrid notes or zero coupon notes may also be issued under the MTN Programme. The MTN shall constitute direct, unconditional, unsubordinated and unsecured obligations the of Issuers and rank pari passu and without any preference among themselves and equally with all other unsecured obligations the of Issuers, from time time to outstanding. All sums payable in respect the of notes will be unconditionally and irrevocably guaranteed Limited, DBS by Trustee in its capacity MGCCT. of as Trustee S$272,816,000) notes outstanding under (2015: Total the March MTN as at Programme 31 2016 is S$492,746,000 Fixed Notes Rate consisting of: (i) Expiring within one year Expiring beyond one year rr m o (e) (e) u (d) B 17. 130 Mapletree Greater China Commercial Trust

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2016

18. Deferred tax (a) Deferred tax assets

Group 2016 2015 S$’000 S$’000

Beginning of the financial year - - Tax credit to Statements of Total Return (Note 7(a)) 2,698 - Utilisation of tax benefits (Note 7(b)) (1,527) - Tax credit to hedging reserve (Note 19) 392 - Translation difference on consolidation (30) - End of the financial year 1,533 -

The movement in deferred income tax assets prior to offsetting of balances within the same tax jurisdiction is as follows:

Change in fair value of derivative financial Tax instruments losses Total S$’000 S$’000 S$’000

Group 2016 Beginning of the financial year - - - Tax credit to Statements of Total Return (Note 7(a)) - 2,698 2,698 Utilisation of tax benefits (Note 7(b)) - (1,527) (1,527) Tax credit to hedging reserve (Note 19) 392 - 392 Translation difference on consolidation - (30) (30) End of the financial year 392 1,141 1,533

Deferred tax assets are recognised for tax losses carried forward to the extent that realisation of the related tax benefits through future taxable profits is probable. A subsidiary of the Group had unutilised tax losses of approximately S$4,562,000 (2015: Nil) at the reporting date which can be carried forward and used to offset against its future taxable income. Tax losses incurred by the subsidiary can be carried forward for a period of up to five years subsequent to the year of the loss.

(b) Deferred tax liabilities

Group 2016 2015 S$’000 S$’000

Beginning of the financial year 36,428 25,256 Tax charge to Statements of Total Return (Note 7(a)) 16,576 12,582 Tax charge/(credit) to hedging reserve (Note 19) 1,887 (4,454) Translation difference on consolidation (926) 3,044 End of the financial year 53,965 36,428 OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others - - - 131 Total 2015 (926) S$’000 S$’000 1,887 7,125 3,044 (2,128) (5,214) (4,454) 16,576 36,428 53,965 12,582 25,256 36,428 (10,211) t 2015/2016 r ------MGCCT l Repo 2016 a S$’000 S$’000 1,887 3,164 5,214 3,164 1,191 (4,454) (3,263) (3,263) (1,376) (5,214) Annu instruments - Change in fair value of derivative financial 2015 - - S$’000 6,027 4,454 1,646 9,838 (6,674) 833 (28,639) (882) S$’000 9,590 6,220 4,417 11,470 20,178 11,470 properties of investment - Group (48) 656 2016 Change in fair value S$’000 9,916 (6,674) (1,495) (1,043) - - (44) S$’000 6,986 6,362 2,211 28,221 35,163 19,648 28,221 depreciation Accelerated tax (continued)

x (continued) erve s a d t (Note 7(a)) (Note 7(a)) The movement in deferred income tax liabilities prior offsetting to balances of within the same tax jurisdictionis as follows: Deferred tax liabilitiesDeferred tax Tax charge hedgingTax to reserve 19) (Note Group 2016 year financial the Beginning of Translation difference on consolidation difference on Translation Tax charge Return StatementsTax to Total of End the of financialyear 2015 year financial the Beginning of Tax credit hedgingTax to reserve 19) (Note Tax charge Return StatementsTax to Total of Translation difference on consolidation difference on Translation End the of financialyear erre

f dging re Finance expenses 6) (Note Exchange differences Dividend income e

(b) De Beginning of the financial year financial the Beginning of Fair value changes value Fair Tax (charge)/credit 18) (Note Tax Return Total of Statement to Reclassification - - - End the of financialyear 18. 19. h 132 Mapletree Greater China Commercial Trust

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2016

20. uNIts in issue

Group and MGCCT 2016 2015 ’000 ’000

Beginning of the financial year 2,721,033 2,684,275 Units issued as settlement of Management fees 36,546 36,758 End of the financial year 2,757,579 2,721,033

During the financial year, MGCCT issued 36,546,223 (2015: 36,757,747) new units at the issued price range of S$0.9124 to S$1.0352 (2015: S$0.8273 to S$0.9442) per unit, in respect of the payment of Management fees to the Manager and the Property Manager in units. The issue prices were determined based on the volume weighted average traded price for all trades done on SGX-ST in the ordinary course of trading for the last 10 business days of the relevant quarter on which the fees accrued.

Each unit in MGCCT represents an undivided interest in MGCCT. The rights and interests of Unitholders are contained in the Trust Deed and include the right to:

• Receive income and other distributions attributable to the units held;

• Participate in the termination of MGCCT by receiving a share of all net cash proceeds derived from the realisation of the assets of MGCCT less any liabilities, in accordance with their proportionate interests in MGCCT. However, a Unitholder does not have the right to require that any assets (or part thereof) of MGCCT be transferred to him; and

• Attend all Unitholders’ meetings. The Trustee or the Manager (and the Manager shall at the request in writing of not less than 50 Unitholders or Unitholders representing not less than 10.0% of the issued units of MGCCT) may at any time convene a meeting of Unitholders in accordance with the provisions of the Trust Deed.

The restrictions of a Unitholder include the following:

• A Unitholder’s right is limited to the right to require due administration of MGCCT in accordance with the provisions of the Trust Deed; and

• A Unitholder has no right to request to redeem his units while the units are listed on SGX-ST.

A Unitholder’s liability is limited to the amount paid or payable for any units in MGCCT. The provisions of the Trust Deed provide that no Unitholder will be personally liable to indemnify the Trustee or any creditor of the Trustee in the event that the liabilities of MGCCT exceed its assets. OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others 133 2015 S$’000 23,664 239,421 352,039 615,124 t 2015/2016 r Group l Repo 2016 a S$’000 61,885 664,172 257,781 344,506 Annu t n eme

k manag k natural currency hedge; risk on its borrowings and interest; and assets, back Singapore into Dollars. s is nt r • entering cross into currency interest swaps rate that are used reduce exposure to the currency Group’s to • entering currency into forward contracts hedge to the foreign currency income received from the offshore Currency risk Currency The Manager’s investment strategy includes investing in the Greater China region. In order manage to the currency risk involved in investing in assets outside Singapore, the Manager will adopt strategies that may include: • the use foreign of currency denominated borrowings match the to currency the of investment asset as a tme arket risk

i Operating lease commitments – where theGroup is a lessor The Group leases out its investment properties. The future minimum lease payments receivable under non-cancellable operatingleases contracted for at the reporting date but not recognised as receivables, are as follows: Capital commitments Development expenditures contracted for at the reporting date but not recognised in the financial statements S$703,000). amounted (2015: S$2,202,000 to (i) mm

o inancial (b) (a) Not later than 1 year F Later than 1 year but not later than 5 years Later than 5 years Some the of operating leases aresubject revision to lease of rentals at periodic intervals. For the purpose the of above disclosure, the prevailing lease rentals are used. The future minimum lease payments receivable under non-cancellable leases exclude the portion lease of payments receivable which are computed based on a percentage the of revenue some of the of leases. The contingent lease payments received during the financialyear and recognised revenue in the are disclosedGroup’s 3. in Note Financial risk factors activitiesThe Group’s expose market it to risk (including currency risk and interest risk), rate credit risk and liquidity risk in the normal course its of business. overall The risk Group’s management strategy seeks minimise to adverse effects from the unpredictability financialof marketsfinancial on the Group’s performance. TheGroup uses financial instruments such as currency forwards, interest swaps, rate cross currency interest swaps, rate and foreign currency borrowings hedge to certain exposures. financial risk The Board Directors of (“BOD”) the of Manager is responsible for setting the objectives and underlying principles financial of risk management for the Group. This is supported comprehensive by internal processes and procedures which are formalised in the Manager’s organisational and reporting structure, operating manuals and delegation authority of guidelines. (a) m

C 21. 22. 134 Mapletree Greater China Commercial Trust

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2016

22. Financial risk management (continued) (a) market risk (continued) (i) Currency risk (continued) The Group’s currency exposure is as follows:

SGD HKD RMB USD Total S$’000 S$’000 S$’000 S$’000 S$’000

Group 2016 Financial assets Cash and bank balances 89,544 12,638 102,443 1,482 206,107 Trade and other receivables (excluding accrued revenue), including deposits 369 398 503 - 1,270 Derivative financial instruments 3,166 6,419 - - 9,585 93,079 19,455 102,946 1,482 216,962

Financial liabilities Trade and other payables (12,700) (101,190) (95,612) (4) (209,506) Derivative financial instruments (2) (14,756) (1,570) - (16,328) Borrowings (394,580) (1,844,249) (73,462) (109,970) (2,422,261) (407,282) (1,960,195) (170,644) (109,974) (2,648,095)

Net financial liabilities (314,203) (1,940,740) (67,698) (108,492) (2,431,133) Less: Net financial (assets)/liabilities denominated in the respective entities’ functional currencies (79,873) 1,940,790 68,847 - Currency forwards - (52,050) (28,103) - Cross currency interest rate swaps# 395,000 - - 110,406 Net currency exposure 924 (52,000)* (26,954)* 1,914

2015 Financial assets Cash and bank balances 33,895 68,734 22,481 - 125,110 Trade and other receivables (excluding accrued revenue), including deposits 990 93 1,480 - 2,563 34,885 68,827 23,961 - 127,673

Financial liabilities Trade and other payables (12,059) (94,326) (36,054) (291) (142,730) Derivative financial instruments (10,211) (19,776) - - (29,987) Borrowings (174,319) (1,809,644) - - (1,983,963) (196,589) (1,923,746) (36,054) (291) (2,156,680)

Net financial liabilities (161,704) (1,854,919) (12,093) (291) (2,029,007) Less: Net financial (assets)/liabilities denominated in the respective entities’ functional currencies (13,202) 1,908,604 12,101 - Currency forwards - (142,992) (27,693) - Cross currency interest rate swaps # 175,000 - - - Net currency exposure 94 (89,307)* (27,685)* (291) OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others (2) 135 Total S$’000 3,907 3,166 90,861 97,934 85,186 87,588 11,990 99,578 78,525 (10,842) (10,211) (21,053) (12,746) (12,748) t 2015/2016 r ------USD l Repo 119 621 740 740 740 a S$’000 Annu ------8 8 8 8 RMB 1,149 1,149 1,149 S$’000 1,149 28,103 27,693 (27,693) (28,103) ------50 HKD 222 272 272 272 219 S$’000 52,050 53,685 53,685 53,685 89,526 (52,050) (142,992) ------(2) SGD S$’000 3,064 3,166 89,543 95,773 83,025 33,895 11,990 45,885 24,832 (10,842) (10,211) (21,053) (24,832) (12,746) (12,748) (83,025) t (continued) n eme (continued) anag k m is contracts entered into to hedge future foreign currency income receivable from its foreign subsidiaries for FY2016/2017 (2015: FY2015/2016), back into SGD. into back FY2015/2016), Net currency (2015: exposure of S$52.0 million FY2016/2017 million and for subsidiaries S$27.0 S$89.3 foreign its (2015: million from receivable income million) currency and foreign S$27.7 future hedge for HKD to and into RMB entered respectivelycontracts mainly relates currency to forward At 31 MarchAt 31 the 2016, Group had cross million. currency HK$623.2 to loan bank interest Nil) rate swaps (2015: million swap to S$395 US$80.0 and million million) million), S$175 (2015: Medium-termHK$1,039.4 notes HK$2,270.0 to million (2015: denominated in MGCCT’s MGCCT’s in denominated currency functional transactions denominated in MGCCT’s MGCCT’s in denominated currency functional transactions et currency exposure currency et et currency exposure currency et

Currency risk Currency currencyMGCCT’s exposure is as follows: # * MGCCT 2016 assets Financial Cash and bank balances Trade and other receivablesTrade Derivative financial instruments Financial liabilities Financial and other payablesTrade Derivative financial instruments et financial assets financial Net Less: Net financial assets Add: Highly probable forecast forecast probable Highly Add: Less: Currency forwards N 2015 assets Financial Cash and bank balances Trade and other receivablesTrade Financial liabilities Financial and other payablesTrade Derivative financial instruments et financial assets financial Net Less: Net financial assets Add: Highly probable forecast forecast probable Highly Add: Less: Currency forwards N arket risk (continued)

(i) inancial r F (a) m 22. 136 Mapletree Greater China Commercial Trust

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2016

22. Financial risk management (continued) (a) market risk (continued) (i) Currency risk (continued) The Group’s main foreign currency exposure is in HKD and RMB. If the HKD and RMB change against the SGD by 4.5% (2015: 5%) with all other variables including tax being held constant, the effects on total return and unitholders’ funds for the year arising from the net financial asset/liability position will be as follows:

Group 2016 2015 Increase/ Increase/ (Decrease) (Decrease) S$’000 S$’000

HKD against SGD - strengthened (2,340) (4,465) - weakened 2,340 4,465

RMB against SGD - strengthened (1,213) (1,384) - weakened 1,213 1,384

MGCCT’s foreign currency exposure is not significant.

(ii) Cash flow and fair value interest rate risk The Group’s exposure to changes in interest rates relates primarily to interest-earning financial assets and interest-bearing financial liabilities. Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market interest rates. The Group has no significant interest-bearing assets.

The Group’s policy is to maintain at least 50% of its borrowings in fixed-rate instruments. The Group’s exposure to cash flow interest rate risks arises mainly from variable-rate borrowings. The Manager manages these cash flow interest rate risks using floating-to-fixed interest rate swaps and cross currency interest rate swaps.

The Group’s borrowings at variable rates on which interest rate swaps have not been entered into, are denominated mainly in HKD.

If HKD interest rates increased/decreased by 50 basis points (2015: 50 basis points) per annum, the total return and unitholders’ funds will be lower/higher by S$2,421,000 (2015: S$1,077,000).

(b) Credit risk Credit risk is the potential financial loss resulting from the failure of a customer or counterparty to settle its financial and contractual obligations to the Group, as and when they fall due.

The Manager has established credit limits for customers and monitors their balances on an ongoing basis. Credit evaluations are performed by the Manager before lease agreements are entered into with customers. The risk is also mitigated due to customers placing security deposits or furnishing bankers guarantees for lease rentals. Cash and short-term bank deposits are placed with financial institutions which are regulated.

At the reporting date, there was no significant concentration of credit risk. The maximum exposure to credit risk is represented by the carrying value of each financial asset in the Statements of Financial Position.

The Group’s and MGCCT’s major classes of financial assets are cash and bank balances and trade and other receivables. OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others - - - - - 137 323 323 2015 2015 S$’000 S$’000 t 2015/2016 r - - - - - MGCCT MGCCT l Repo 368 368 2016 2016 a S$’000 S$’000 Annu 16 323 213 388 229 2015 2015 S$’000 S$’000 1,142 1,853 Group Group 31 368 328 349 102 359 819 2016 2016 S$’000 S$’000 t (continued) n eme anag k m is Past due 3 months 0 to Past due over 6 months Financial assets that are past due and/or impaired and/or due are past assets that Financial There is no other class financial of assets that is past due and/or impairedexcept for trade receivables. The age analysis trade of receivables past due but not impaired is as follows: Financial assets that are neither past due nor impaired Bank deposits that are neither past due nor impaired are mainly deposits with banks which are regulated and with high credit-ratings assigned international by credit-rating agencies. and other receivables Trade that are neither past due nor impaired are substantially from companies with a good collection track record with the Group.

Credit risk (continued) The credit risk for trade receivables is as follows: By geographical areas By Singapore HongKong SAR PRC Liquidity risk The Manager monitors and maintains a level cash of and bank balances deemed adequate finance to the Group’s operations. In addition, the Manager also monitors and observes the CCIS the by MAS concerning the leverage limits as well as bank covenants imposed the by banks on the various borrowings. (ii) (i) inancial r F (b) (c)

22. 138 Mapletree Greater China Commercial Trust

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2016

22. Financial risk management (continued) (c) Liquidity risk (continued) The table below analyses the maturity profile of the Group’s and MGCCT’s financial liabilities (including derivative financial liabilities) based on contractual undiscounted cash flows.

Between Between Less than 1 and 2 2 and 5 Over 5 1 year years years years S$’000 S$’000 S$’000 S$’000

Group 2016 Net-settled interest rate swaps - cash flow hedges - Net cash outflows (8,363) (3,987) (1,710) - Gross-settled cross currency interest rate swaps - cash flow hedges - Receipts 6,514 6,514 18,845 4,266 - Payments (9,245) (9,245) (24,597) (4,397) Gross-settled currency forwards - Receipts 4,161 - - - - Payments (4,163) - - - Trade and other payables (147,119) (28,606) (28,548) (5,233) Borrowings (517,885) (758,396) (928,297) (413,958) (676,100) (793,720) (964,307) (419,322)

2015 Net-settled interest rate swaps - cash flow hedges - Net cash outflows (7,038) (5,643) - - Gross-settled cross currency interest rate swaps - cash flow hedges - Receipts 5,830 5,814 17,490 10,096 - Payments (6,267) (6,250) (18,800) (10,667) Gross-settled currency forwards - Receipts 160,474 - - - - Payments (170,685) - - - Trade and other payables (76,346) (24,609) (37,355) (4,420) Borrowings (314,226) (767,697) (848,832) (185,128) (408,258) (798,385) (887,497) (190,119)

MGCCT 2016 Gross-settled currency forwards - Receipts 4,161 - - - - Payments (4,163) - - - Trade and other payables (12,746) - - - (12,748) - - -

2015 Gross-settled currency forwards - Receipts 160,474 - - - - Payments (170,685) - - - Trade and other payables (10,842) - - - (21,053) - - - OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others 139 2015 S$’000 36.2% 1,983,963 5,488,061 t 2015/2016 r Group l Repo 2016 a S$’000 39.5% Annu 2,428,941 6,153,504 (continued) t n eme k manag k is r quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1); inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly as prices)(i.e. or indirectly derived (i.e. from prices) and (Level 2); inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3). Total borrowingsTotal and deferred payments Capital risk The Manager’s objective when managing capital optimise is capital to MGCCT’s structure within the borrowing limits set out in the CCIS the by MAS fund to future acquisitions and asset enhancement properties. works at MGCCT’s To maintain or achieve an optimal capital structure, the Manager may issue new units or source additional borrowings from both financial institutions and capital markets. The Group is subject the aggregate to leverage limit as defined in Appendix theof 6 CCIS (“PropertyFunds Appendix”). The Property Funds Appendix stipulates that the borrowings total and deferred payments (collectively, the Leverage”)“Aggregate a property of fund should deposited not the of exceed fund’s 35.0% property. The Aggregate Leverage a property of fund deposited may the of exceed fund’s 35.0% property a maximum to (up only if a 60.0%) of credit rating the of property fund from Fitch Inc, Investors Moody’s or Standard is obtained and Poor’s and disclosed the public.to MGCCT currently Stable) retains Baa1 from an issuer Moody’s Stable March rating Baa1 of 2015: (31 Investors. With effect from 1 January under the Property 2016, Funds Appendix, the Aggregate Leverage a property of fund has been revised not its exceed of Deposited to 45.0% Property, regardless whether a credit rating from the above mentioned agencies have been obtained for the property fund. The Group has complied with the Aggregate leverage requirements for the financial31 years Marchand2015. 31 endingMarch2016 The aggregate leverage ratio is calculated as borrowings total and deferred payments divided assets. total by Total assets Total Aggregate leverage ratio (ii) (iii) The Group and MGCCT are in compliance with the borrowing limit requirement imposed the by CCIS and all externally imposed capital requirements for the financial31 years Marchand2015. 31 endedMarch2016 Fair value measurements The following table presents our assets and liabilities measured at fair value at reporting dates and classifiedby levelof hierarchy: measurement value fair following the (i) inancial F (d) (e)

22. 140 Mapletree Greater China Commercial Trust

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2016

22. Financial risk management (continued) (e) Fair value measurements (continued)

Level 2 2016 2015 S$’000 S$’000

Group Assets Derivative financial instruments 9,585 -

Liabilities Derivative financial instruments (16,328) (29,987)

MGCCT Assets Derivative financial instruments 3,166 -

Liabilities Derivative financial instruments (2) (10,211)

The fair values of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) are determined by using valuation techniques. The fair values of forward currency contracts are determined using actively quoted forward currency rates at the reporting date. The fair values of interest-rate swaps and cross currency interest rate swaps are calculated as the present value of the estimated future cash flows, discounted at actively quoted interest rates.

The carrying value of trade and other receivables and trade and other payables approximate their fair values.

(f) Financial instruments by category The following table sets out the different categories of financial instruments as at the reporting date:

Group MGCCT 2016 2015 2016 2015 S$’000 S$’000 S$’000 S$’000

Financial assets at fair value through profit or loss 9,585 - 3,166 - Financial liabilities at fair value through profit or loss (16,328) (29,987) (2) (10,211) Loans and receivables 207,377 127,673 94,768 99,578 Financial liabilities at amortised cost (2,631,767) (2,126,693) (12,746) (10,842) OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others ------141 2015 S$’000 22,012 t 2015/2016 r - - - - - MGCCT l Repo 2016 a S$’000 3,992 24,871 Annu - 181 2015 S$’000 1,499 8,387 22,012 10,496 11,971 Group 46 2016 S$’000 3,992 9,447 24,871 12,910 16,363 16,730 ions t ansac t n re rty tr a a d p te p ion t a te a m i la t rm l t re t info n t and u n me re g ignifican For the purposes these of financial statements, parties are consideredto be related to MGCCT when MGCCT has the ability, directly or control indirectly, to the party or exercise significant influenceover the party in making financial and operating decisions, or vice versa, or whereMGCCT and the party are subject common to significant influence. Related partiesmay be individuals or other entities. The Manager and the Property Manager are indirect wholly-owned subsidiaries the of parent. During the financialother thanyear, those disclosed elsewhere in the financial statements, the following significant related party transactions took place at terms agreed between the related companies as follows: For financial reporting Consolidated purposes Financial under Statements,FRS110 the Group is regarded as a subsidiaryof Mapletree Investments The Pte Ltd. parent is Mapletree Investments incorporated Pte Ltd, in Singapore. The ultimate parent Singapore. in incorporated Limited, (Private) Holdings Temasek is S Se The Group has determined the operating segments based on the reports reviewed Management by that are used make to strategic decisions. Management comprises the Chief Executive Officer and the Chief Financial Officer. Management considers the business from a geographic segment perspective. Geographically, Management manages and monitors the business in Greater China, primarily in Hong Kong SAR and All PRC. geographical locations are in the business investing,of directly or indirectly, in a diversified portfolioof income-producing real estate in the Greater China region which is used primarily for commercial purposes (including real estate used predominantly for retail and/or office purposes), wellas as real estate-related assets. Management assesses the performance the of geographic segments based on a measure Net of Property Income (“NPI”). Interest income and financeexpenses are not allocatedto segments, as the treasury activities are centrally managedby Group. the Acquisition fees paid fees Acquisition Management fees paid/payable paid/payable fees management Property received/receivable rental Lease paid/payable fees management Development Staff costs paid/payable feespaid/payable financing and expense Interest 24. 23. pA 25. 142 Mapletree Greater China Commercial Trust

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2016

25. Segment information (continued) The segment information provided to Management for the reportable segments for the financial year ended 31 March 2016 is as follows:

Hong Kong SAR PRC Others* Total S$’000 S$’000 S$’000 S$’000

Gross revenue 236,499 100,139 - 336,638

Net property income 187,235 90,231 - 277,466 Interest income 557 Management fees (24,871) Other trust expenses and Trustee’s fee (2,839) Foreign exchange gain 32,340 Finance costs (65,008) Net income 217,645 Net change in fair value of financial derivatives 8,378 Net change in fair value of investment properties 172,633 67,288 - 239,921

Total return for the financial year before income tax 465,944

Income tax expense (37,843)

Total return for the financial year after income tax before distribution 428,101

Other Segment items Capital expenditure - Investment properties 5,763 7,092 - 12,855

Segment assets - Investment properties # 4,253,079 1,669,378 - 5,922,457 - Deferred tax assets - 1,533 - 1,533 - Other segment assets 19,594 109,105 91,230 219,929 4,272,673 1,780,016 91,230 6,143,919 Derivative financial instruments 9,585 Consolidated total assets 6,153,504

Segment liabilities - Trade and other payables 101,191 95,615 12,700 209,506 - Current income tax liabilities 28,529 6,673 55 35,257 - Deferred tax liabilities 33,787 20,178 - 53,965 163,507 122,466 12,755 298,728 Borrowings and Derivative financial instruments 2,438,589 Consolidated total liabilities 2,737,317 OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others 143 476 Total S$’000 4,974 (3,054) (3,957) (3,086) 34,769 36,428 (40,842) (33,819) (22,012) 159,921 196,383 353,218 319,399 281,144 229,310 138,763 142,730 213,927 5,349,298 5,488,061 2,013,950 2,227,877 t 2015/2016 r ------20 l Repo a Others* S$’000 87,923 87,923 10,817 10,837 Annu PRC S$’000 7,345 1,282 62,203 74,700 67,172 29,820 36,054 11,471 54,870 1,271,427 1,301,247 S$’000 3,692 21,020 95,859 27,404 24,957 134,180 206,444 162,138 148,220 4,077,871 4,098,891 Hong Kong SAR

ion (continued) # t a rm t info egment items egment n me g Other segment comprises MGCCT and a subsidiary, which are not reportable segments individually. reportable segments not are which subsidiary, a and MGCCT comprises segment Other before distributionbefore Investment properties contribute significantly to total non-current assets. non-current total to significantly contribute properties Investment Other segment assets and other payablesTrade Current income tax liabilities Deferred tax liabilities Investment properties Investment properties ther S ther otal return for the financial year before income tax otal return for the financial year after income tax

Se The segment information provided Management to for the reportable segments for the financial period ended is as follows: March31 2015 * # business. commercial - product/service single a provides Group The Net income Net Net change in fair value financial of derivatives T Income tax expense T O Foreign exchange loss exchange Foreign Finance costs Net change in fair value investment of properties Gross revenue Net propertyNet income income Interest fees Management Other trust fee expenses and Trustee’s - assets total Consolidated liabilities Segment - - - Segment assets Segment - Capital expenditure expenditure Capital - Borrowings and Derivative financial instruments liabilities total Consolidated 25. 144 Mapletree Greater China Commercial Trust

NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 March 2016

26. Financial Ratios

Group 2016 2015 % %

Ratio of expenses to weighted average net assets ¹ - including performance component of asset management fees 0.86 0.88 - excluding performance component of asset management fees 0.71 0.73 Portfolio turnover ratio ² - -

¹ The annualised ratios are computed in accordance with the guidelines of Investment Management Association of Singapore dated 25 May 2005. The expenses used in the computation relate to expenses of the Group, excluding property expenses, borrowing costs, net foreign exchange differences and income tax expense. ² In accordance with the formulae stated in the CCIS, the ratio reflects the number of times per year that a dollar of assets is reinvested. The annualised ratio is computed based on the lesser of purchases or sales of underlying investment properties of the Group expressed as a percentage of daily average net asset value.

27. events occurring after reporting date The Manager announced a distribution of 3.771 cents per unit, which amounted to S$103,988,000 for the period from 1 October 2015 to 31 March 2016.

28. New or revised accounting standards and interpretations Below are the mandatory standards that have been published, and are relevant for the Group’s accounting periods after 1 April 2016 or later periods and which the Group has not early adopted:

• FRS 1 Presentation of financial statements (effective for annual periods beginning on or after 1 January 2016)

The amendment clarifies guidance in FRS 1 on materiality and aggregation, the presentation of subtotals, the structure of financial statements and the disclosure of accounting policies.

This amendment is not expected to have any significant impact on the financial statements of the Group.

• FRS 109 Financial instruments (effective for annual periods beginning on or after 1 January 2018)

The complete version of FRS 109 replaces most of the guidance in FRS 39. FRS 109 retains but simplifies the mixed measurement model and establishes three primary measurement categories for financial assets: amortised cost, fair value through Other Comprehensive Income (OCI) and fair value through Profit or Loss. The basis of classification depends on the entity’s business model and the contractual cash flow characteristics of the financial asset. Investments in equity instruments are required to be measured at fair value through profit or loss with the irrevocable option at inception to present changes in fair value in OCI. There is now a new expected credit losses model that replaces the incurred loss impairment model used in FRS 39.

For financial liabilities there were no changes to classification and measurement except for the recognition of changes in own credit risk in other comprehensive income, for liabilities designated at fair value, through profit or loss. FRS 109 relaxes the requirements for hedge effectiveness by replacing the bright line hedge effectiveness tests. It requires an economic relationship between the hedged item and hedging instrument and for the ‘hedged ratio’ to be the same as the one management actually use for risk management purposes. Contemporaneous documentation is still required but is different to that currently prepared under FRS 39.

The Group will apply this amendment for financial year beginning 1 April 2018.

29. Authorisation of the financial statements The financial statements were authorised for issue by the Manager and the Trustee on 27 April 2016. OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others % % % 145 0.51 1.57 9.21 4.80 3.44 3.18 2.67 1.54 1.28 1.17 0.95 0.93 0.50 0.44 0.25 0.22 0.20 0.17 0.14 0.00 0.19 2.35 97.92 25.93 14.62 13.51 85.15 10.65 86.81 100.00 100.00 t 2015/2016 r l Repo a 244 Units Units Units No. of No. of No. of Annu 6,949,500 6,000,000 5,621,300 4,587,600 3,750,000 5,278,792 14,109,200 43,612,882 95,463,327 88,085,139 74,078,582 42,787,800 35,495,980 32,289,004 26,341,102 25,641,900 13,744,400 12,317,061 65,058,643 718,661,000 405,285,657 374,320,090 255,169,400 133,086,000 295,155,018 2,713,561,480 2,771,283,562 2,359,674,842 2,405,790,865 2,771,283,562 % % 1.25 0.75 0.17 0.04 98.00 20.93 49.57 29.29 100.00 100.00 9 44 316 190 No. of No. of 5,309 7,429 24,860 25,366 12,575 25,366 Unitholders Unitholders gs din l ho S ER S T S NI OLD OLDINGS TH TH AID U NI ER OLD NI s of Unit TH Y P T U S NI LL E U G tic R ION OF U OF ION UT ION OF U OF ION TY LA D AND F T N Name Kent Assets Pte. Ltd. Limited Nominees (Private) DBS Citibank Nominees Singapore Pte Ltd HSBC (Singapore) Nominees Pte Ltd Total Suffolk Assets Pte. Ltd. Limited Raffles(Pte.) Nominees DBSN Services Pte. Ltd. Ltd. Management Trust Commercial China Greater Mapletree BNP Paribas Securities Services Limited Management Property China Greater Mapletree Ltd Pte (Singapore) Nominees DB Bank Of Singapore Nominees Pte. Ltd. Limited (Private) Nominees Bank Overseas United DBS Vickers Securities (Singapore) Pte Ltd Ltd Pte Securities (Singapore) Asia Stanley Morgan UOB Kay Hian Private Limited Limited Co-Operative Fairprice NTUC Limited Private Nominees Singapore OCBC OCBC Securities Private Limited Kong Chee Liew IB TR UE No. 1. Malaysia Others Total TWE 2. 3. 4. Singapore Country 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 100 - 1,000 - 100 -1,001 10,000 10,001 - 1,000,000 1,000,001 and above Total LOCA Size of Unitholdings 1 - 99 ISS As at 30 May 2016 s Stati DIS 2,771,283,562 units (voting rights: one per vote unit) 2,771,283,562 (based on closing per price unit S$0.975 of on 30 May 2016) Market Capitalisation: S$2,702,001,472.95 146 Mapletree Greater China Commercial Trust

Statistics of Unitholdings As at 30 May 2016

SUBSTANTIAL UNITHOLDINGS AS AT 30 MAY 2016 Direct Deemed % of Total No. Name of Company Interest Interest Issued Capital

1. Temasek Holdings (Private) Limited (1) - 991,955,156 35.79 2. Fullerton Management Pte Ltd (2) - 961,321,562 34.68 3. Mapletree Investments Pte Ltd (3) - 961,321,562 34.68 4. Kent Assets Pte. Ltd. 718,661,000 - 25.93 5. AIA Group Limited (4) - 146,342,300 5.28 6. AIA Company Limited (5) 135,800 146,206,500 5.28

Notes: (1) Temasek Holdings (Private) Limited ("Temasek") is deemed to be interested in the 718,661,000 units held by Kent Assets Pte. Ltd. ("Kent"), 133,086,000 units held by Suffolk Assets Pte. Ltd. ("Suffolk"), 74,078,582 units held by Mapletree Greater China Commercial Trust Management Ltd. ("MGCCTM") and 35,495,980 units held by Mapletree Greater China Property Management Limited ("MGCPM"). Mapletree Investments Pte Ltd ("MIPL") is the ultimate holding company of Kent, Suffolk, MGCCTM and MGCPM and is wholly-owned subsidiary of Fullerton Management Pte Ltd which in turn a wholly-owned subsidiary of Temasek. In addition, Temasek is deemed interested in the 30,633,594 units in which its associated company has direct or deemed interests. (2) Fullerton Management Pte Ltd through its shareholding in MIPL, is deemed to be interested in the 718,661,000 units held by Kent, 133,086,000 units held by Suffolk, 74,078,582 units held by MGCCTM and 35,495,980 units held by MGCPM. (3) MIPL is deemed to be interested in the 718,661,000 units held by Kent, 133,086,000 units held by Suffolk, 74,078,582 units held by MGCCTM and 35,495,980 units held by MGCPM. (4) AIA Group Limited is deemed interested in AIA Company Limited which in turn is deemed interested in 135,800 units held by AIA Co Ltd (Brunei Branch) through Citibank Nominees Singapore Pte Ltd, 82,170,000 units held by AIA Singapore Private Limited through Citibank Nominees Singapore Pte Ltd, and 64,036,500 units held by AIA International Limited. (5) AIA Company Limited holds a direct interest of 135,800 units held by AIA Co Ltd (Brunei Branch) through Citibank Nominees Singapore Pte Ltd, and deemed interest of 82,170,000 units held by AIA Singapore Private Limited through Citibank Nominees Singapore Pte Ltd, and 64,036,500 units held by AIA International Limited.

Unitholdings of the Directors of the Manager as at 21 April 2016 Direct Deemed % of Total No. Name Interest Interest Issued Capital

1. Frank Wong Kwong Shing - 2,899,000 0.10 2. Kevin Kwok Khien 540,000 - 0.01 3. Lok Vi Ming 190,000 - 0.006 4. Michael Kok Pak Kuan 540,000 - 0.01 5. Hiew Yoon Khong 830,000 3,150,000 0.14 6. Chua Tiow Chye 1,550,000 - 0.05 7. Cindy Chow Pei Pei 400,000 250,000 0.023

Free Float Based on the information made available to the Manager as at 30 May 2016, approximately 58.55% of the units in MGCCT were held in the hands of the public. Accordingly, Rule 723 of the Listing Manual of the SGX-ST has been complied with. OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others

− − − − − − − − 147 S$’000 t 2015/2016 of all interested of all interested Aggregate value Aggregate r conducted under less than $100,000) person transactions pursuant to Rule 920 Unitholders’ mandate l Repo (excluding transactions a Annu

46 620 S$’000 1,386 9,447 3,992 24,871 12,910 30,144 Aggregate value Aggregate pursuant to Rule 920) of all interested person of all interested less than $100,000 and transactions during the (excluding transactions transactions conducted S financial year under review financial year under under Unitholders’ mandate N O ACTI S AN TR N RSO E imited and its subsidiaries its and imited td and its subsidiaries its and td te L te D P td and its subsidiaries its and td rivate) L rivate) P TE S oldings L oldings E nvestments P nvestments oldings ( oldings R Group H Group S Interest expense Interest Property and lease management fees Staff cost fees Acquisition fees management Development Manager’s management fees management Manager’s Interest expense Interest Trustee fees Trustee emasek H emasek

Please also see Significant RelatedParty Transactionsof the24 Financial in Note Statements. As set out Prospectus in the MGCCT’s February fees dated 27 and charges 2013, payable MGCCT the by Manager to under the DeedTrust and the Property to Manager under the Property Management Agreement are not subject Rules to 905 and 906 of Listing Manual.the SGX-ST’s MGCCT Group has not obtained a general mandate from Unitholders pursuant Rule to for 920 any interested person transactions. Save as disclosed above, there were no interested person transactions (excluding transactions less of than each), S$100,000 nor material contracts entered MGCCT by into Group that involved the interests the of CEO or Director the of or Manager, any controlling Unitholder during the of the Trust, financialyear under review. For the purpose the of disclosure, the full contract sum was used where an interested person transaction had a fixedterm and contract value, while the annual amount incurred and/or accrued was used where an interested person transaction had an indefiniteterm or where the contract sumwas not specified. - Name of Interested Person Name of Interested I Mapletree - - - - The transactions enteredwith into interested persons during the financial which year, fall under the Listing Manualof the Singapore Exchange Securities Limited Trading (“SGX-ST”) and the Property Funds Appendix the of Code onCollective Investment Schemes (excluding transactions less of than each) S$100,000 are as follows: - For the financialyear 31 endedMarch2016 INTE DB - - T 148 Mapletree Greater China Commercial Trust

Notice of Annual General Meeting

NOTICE IS HEREBY GIVEN that the 3rd Annual General Meeting of the holders of units of Mapletree Greater China Commercial Trust (“MGCCT”, and the holders of units of MGCCT, “Unitholders”) will be held at 10.00 a.m. on 29 July 2016 (Friday), at 10 Pasir Panjang Road, Mapletree Business City, Town Hall (formerly known as Multipurpose Hall) – Auditorium, Singapore 117438 to transact the following businesses:

(A) AS ORDINARY BUSINESS 1. To receive and adopt the Report of DBS Trustee Limited, as trustee of MGCCT (the “Trustee”), the Statement by Mapletree Greater China Commercial Trust Management Ltd., as manager of MGCCT (the “Manager”), and the Audited Financial Statements of MGCCT for the financial year ended 31 March 2016 and the Auditor’s Report thereon. (Ordinary Resolution 1)

2. To re-appoint PricewaterhouseCoopers LLP as the Auditor of MGCCT and to hold office until the conclusion of the next Annual General Meeting of MGCCT, and to authorise the Manager to fix their remuneration. (Ordinary Resolution 2)

(B) AS SPECIAL BUSINESS To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution, with or without any modifications:

3. That approval be and is hereby given to the Manager, to

(a) (i) issue units in MGCCT (“Units”) whether by way of rights, bonus or otherwise; and/or

(ii) make or grant offers, agreements or options (collectively, “Instruments”) that might or would require Units to be issued, including but not limited to the creation and issue of (as well as adjustments to) securities, warrants, debentures or other instruments convertible into Units,

at any time and upon such terms and conditions and for such purposes and to such persons as the Manager may in its absolute discretion deem fit; and

(b) issue Units in pursuance of any Instruments made or granted by the Manager while this Resolution was in force (notwithstanding that the authority conferred by this Resolution may have ceased to be in force at the time such Units are issued),

provided that:

(1) the aggregate number of Units to be issued pursuant to this Resolution (including Units to be issued in pursuance of Instruments made or granted pursuant to this Resolution) shall not exceed fifty per cent. (50%) of the total number of issued Units (excluding treasury Units, if any) (as calculated in accordance with sub- paragraph (2) below), of which the aggregate number of Units to be issued other than on a pro rata basis to Unitholders (including Units to be issued in pursuance of Instruments made or granted pursuant to this Resolution) shall not exceed twenty per cent. (20%) of the total number of issued Units (excluding treasury Units, if any) (as calculated in accordance with sub-paragraph (2) below);

(2) subject to such manner of calculation as may be prescribed by Singapore Exchange Securities Trading Limited (the “SGX-ST”) for the purpose of determining the aggregate number of Units that may be issued under sub-paragraph (1) above, the total number of issued Units (excluding treasury Units, if any) shall be based on the number of issued Units (excluding treasury Units, if any) at the time this Resolution is passed, after adjusting for:

(a) any new Units arising from the conversion or exercise of any Instruments which are outstanding or subsisting at the time this Resolution is passed; and

(b) any subsequent bonus issue, consolidation or subdivision of Units; OVERVIEW STRATEGY PERFORMANCE GOVERNANCE & Sustainability FINANCIALS & Others 149 t 2015/2016 r l Repo a Annu ”) for the time being in rust Deed rust T ”) must be deposited at the office of MGCCT’s Unit Registrar, Boardroom Corporate & Advisory Services Pte. 50 Ltd., Raffles rdinary Resolution 3) rdinary Resolution ”) established by the Central Provident Fund Act, Chapter 36 of Singapore, in respect of Units purchased under the subsidiary legislation legislation subsidiary the under purchased Units of respect in Singapore, of 36 Chapter Act, Fund Provident Central the by established ”) O roxy Form roxy P ( F Board P C force (unless otherwise exempted or waived the by Monetary Authority Singapore); of unless revoked or varied Unitholders by in a general meeting, the authority conferred this by Resolution shall continue in force until (i) the conclusion the of next Annual General Meeting MGCCT of or (ii) the date whichby the next Annual General Meeting MGCCT of is required applicable by regulations be held, to earlier; is whichever where the terms the of issue the of Instruments provide for adjustment the number to Instruments of or Units which into the Instruments may be converted in the event rights, of bonus or other capitalisation issues or any other events, the Manager is authorised issue to additional Instruments or Units pursuant to such adjustment notwithstanding that the authority conferred this by Resolution may have ceased be in to force at the time the Instruments or Units are issued; and the Manager be and and are the Trustee, hereby severally authorised complete to and do all such acts and things(including executing all such documents as may be required) as the Manager as the case or, may considermay be, the Trustee expedient or necessary or in the interest MGCCT give of to effect the to authority conferred this by Resolution. in exercising the authority conferred this by Resolution, the Manager shall comply with the provisions the of Listing Manual for the of the SGX-ST time being in force (unless such compliance has been waived the by SGX-ST) and the trust deed constituting MGCCTamended) (as (the “ ” means: (4) (4) (5) (6) (3) (3) ntermediary (Please see Explanatory(Please Note) a banking corporation licensed under the Banking Act, Chapter 19 of Singapore, or a wholly-owned subsidiary of such a banking corporation, whose business includes the provision of of provision the includes business whose corporation, banking a such of subsidiary wholly-owned a or Singapore, of 19 Chapter Act, Banking the under licensed corporation banking a nominee services and who holds Units in that capacity; a person holding a capital market services licence provide to custodial or capacity; services for securities under the Securities and Futures Act, Chapter 289 of Singapore, and who holds Units in that made under that Act providing for the making of legislation. subsidiary investments that with accordance in or from to pursuant intermediary the an contributions of capacity the in Units those and interest standing the to credit of members of the Central Provident Fund, if theCPF Board holds the Central Provident Fund Board (“

Relevant I Relevant A Unitholder who is not a Relevant Intermediary entitled attend to and vote at theneed Annual not be General a Unitholder. Meeting Where a Unitholder is entitled appoint to appoints one more or two than proxies one proxy, the attend to appointments andpercentage vote in his/her shall of the stead. be whole) invalid A proxy be to unless represented he/she specifies by each proxy. the proportion of his/her holding(expressed as a A Unitholder who is a Relevant Intermediary entitled attend to and vote at the Annualeach proxy General must be appointed Meeting is entitled exercise to the appoint to rights attached more than one a different to proxy attend to Unit andbe vote invalid or instead Units held unless of the Unitholder, by such the Unitholder. Unitholder but Where specifies such Unitholder the number appoints of Units morein relation than oneto which proxy, the appointmentseach proxy has been shall appointed in the Proxy Form(defined below). (a) (b) (c) The instrument appointing a proxy or proxies (the “ Place, #32-01 Singapore Land Singapore Tower, 048623 not later than 10.00 a.m. on 26 July being 2016 hours 72 before the time fixed for the Annual General Meeting. Singapore June29 2016 Wan Kwong Weng Kwong Wan Joint Company Secretary BY ORDERBY OF THE BOARD Ltd. Management Trust Commercial China Greater Mapletree (Company Registration 201229323R) No. As Manager Mapletree of Greater China Commercial Trust 2. “ Notes: 1.

3. 150 Mapletree Greater China Commercial Trust

Notice of Annual General Meeting

Personal data privacy: By submitting an instrument appointing a proxy(ies) and/or representative(s) to attend, speak and vote at the Annual General Meeting and/or any adjournment thereof, a Unitholder (i) consents to the collection, use and disclosure of the Unitholder’s personal data by the Manager and the Trustee (or their agents) for the purpose of the processing, administration and analysis by the Manager and the Trustee (or their agents) of proxies and representatives appointed for the Annual General Meeting (including any adjournment thereof) and the preparation and compilation of the attendance lists, minutes and other documents relating to the Annual General Meeting (including any adjournment thereof), and in order for the Manager and the Trustee (or their agents) to comply with any applicable laws, listing rules, regulations and/or guidelines (collectively, the “Purposes”), (ii) warrants that where the Unitholder discloses the personal data of the Unitholder’s proxy(ies) and/or representative(s) to the Manager and the Trustee (or their agents), the Unitholder has obtained the prior consent of such proxy(ies) and/or representative(s) for the collection, use and disclosure by the Manager and the Trustee (or their agents) of the personal data of such proxy(ies) and/or representative(s) for the Purposes, and (iii) agrees that the Unitholder will indemnify the Manager and the Trustee in respect of any penalties, liabilities, claims, demands, losses and damages as a result of the Unitholder’s breach of warranty.

Explanatory Note:

Ordinary Resolution 3

The Ordinary Resolution 3 above, if passed, will empower the Manager from the date of this Annual General Meeting until (i) the conclusion of the next Annual General Meeting of MGCCT or (ii) the date by which the next Annual General Meeting of MGCCT is required by the applicable regulations to be held, whichever is earlier, to issue Units and to make or grant instruments (such as securities, warrants or debentures) convertible into Units and issue Units pursuant to such instruments, up to a number not exceeding fifty per cent. (50%) of the total number of issued Units (excluding treasury Units, if any) with a sub-limit of twenty per cent. (20%) for issues other than on a pro rata basis to Unitholders.

For determining the aggregate number of Units that may be issued, the percentage of issued Units will be calculated based on the issued Units at the time the Ordinary Resolution 3 above is passed, after adjusting for new Units arising from the conversion or exercise of any Instruments which are outstanding at the time this Resolution is passed and any subsequent bonus issue, consolidation or subdivision of Units.

Fund raising by issuance of new Units may be required in instances of property acquisitions or debt repayments. In any event, if the approval of Unitholders is required under the Listing Manual of the SGX-ST and the Trust Deed or any applicable laws and regulations in such instances, the Manager will then obtain the approval of Unitholders accordingly. IMPORTANT 1. A relevant intermediary may appoint more than one proxy to attend and vote at the Annual General Meeting (please see Note 2 for the definition of “Relevant Intermediary”). Mapletree Greater China 2. For CPF/SRS investors who have used their CPF monies to buy Units of Mapletree Greater China Commercial Trust, this Report to Unitholders is forwarded to them at Commercial Trust the request of their CPF Approved Nominees and is sent solely FOR INFORMATION only. (Constituted in the Republic of Singapore pursuant 3. This Proxy Form is not valid for use by CPF/SRS investors and shall be ineffective for to a Trust Deed dated 14 February 2013 (as amended)) all intents and purposes if used or is purported to be used by them. 4. PLEASE READ THE NOTES TO THE PROXY FORM.

Personal Data Privacy By submitting an instrument appointing a proxy(ies) and/or representative(s), a Unitholder Proxy Form of Mapletree Greater China Commercial Trust accepts and agrees to the personal data 3rd Annual General Meeting privacy terms set out in the Notice of Annual General Meeting dated 29 June 2016.

I/We (Name(s) and NRIC/Passport/Company Registration Number(s)) of (Address) being a Unitholder/Unitholders of Mapletree Greater China Commercial Trust (“MGCCT”), hereby appoint:

NRIC/Passport Proportion of Unitholdings Name Address Number No. of Units %

and/or (delete as appropriate)

NRIC/Passport Proportion of Unitholdings Name Address Number No. of Units %

or, both of whom failing, the Chairman of the 3rd Annual General Meeting as my/our proxy/proxies to attend and to vote for me/us on my/our behalf and if necessary, to demand a poll, at the 3rd Annual General Meeting of MGCCT to be held at 10.00 a.m on 29 July 2016 (Friday), at 10 Pasir Panjang Road, Mapletree Business City, Town Hall (formerly known as Multipurpose Hall) - Auditorium, Singapore 117438 and at any adjournment thereof. I/We direct my/our proxy/proxies to vote for or against the resolutions to be proposed at the 3rd Annual General Meeting as indicated hereunder. If no specific direction as to voting is given, the proxy/proxies will vote or abstain from voting at his/her/their discretion, as he/she/they may on any other matter arising at the 3rd Annual General Meeting.

No. Ordinary Resolutions For* Against* ORDINARY BUSINESS 1. To receive and adopt the Trustee's Report, the Manager’s Statement, the Audited Financial Statements of MGCCT for the financial year ended 31 March 2016 and the Auditor's Report thereon. 2. To re-appoint PricewaterhouseCoopers LLP as Auditor and to authorise the Manager to fix the Auditor’s remuneration. SPECIAL BUSINESS 3. To authorise the Manager to issue Units and to make or grant convertible instruments.

* If you wish to exercise all your votes “For” or “Against”, please tick ( ) within the box provided. Alternatively, please indicate the number of votes as appropriate.

Dated this day of 2016

Total number of Units held

Signature(s) of Unitholder(s) or Common Seal of Corporate Unitholder 1st fold (this flap is for sealing)

Do not staple. Glue all sides firmly. Postage will be paid by addressee. For posting in Singapore only.

BUSINESS REPLY SERVICE PERMIT NO. 08984

The Company Secretary Mapletree Greater China Commercial Trust Management Ltd. (As Manager of Mapletree Greater China Commercial Trust) c/o Boardroom Corporate & Advisory Services Pte. Ltd. 50 Raffles Place, #32-01 Singapore Land Tower Singapore 048623

2nd fold

IMPORTANT: PLEASE READ THE NOTES TO PROXY FORM BELOW

Notes to Proxy Form 1. A unitholder of MGCCT (“Unitholder”) who is not a Relevant Intermediary entitled later than 10.00 a.m. on 26 July 2016, being 72 hours before the time set for the to attend and vote at the Annual General Meeting is entitled to appoint one or two Annual General Meeting. proxies to attend and vote in his/her stead. A proxy need not be a Unitholder. 5. Completion and return of the Proxy Form shall not preclude a Unitholder from Where a Unitholder appoints more than one proxy, the appointments shall be attending and voting at the Annual General Meeting. Any appointment of a proxy or invalid unless he/she specifies the proportion of his/her holding (expressed as a proxies shall be deemed to be revoked if a Unitholder attends the Annual General percentage of the whole) to be represented by each proxy. Meeting in person, and in such event, the Manager reserves the right to refuse 2. A Unitholder who is a Relevant Intermediary entitled to attend and vote at the to admit any person or persons appointed under the Proxy Form, to the Annual Annual General Meeting is entitled to appoint more than one proxy to attend and General Meeting. vote instead of the Unitholder, but each proxy must be appointed to exercise the 6. The Proxy Form must be executed under the hand of the appointor or of his/ rights attached to a different Unit or Units held by such Unitholder. Where such her attorney duly authorised in writing. Where the Proxy Form is executed by a Unitholder appoints more than one proxy, the appointments shall be invalid unless corporation, it must be executed either under its common seal or under the hand the Unitholder specifies the number of Units in relation to which each proxy has of its attorney or a duly authorised officer. been appointed in the Proxy Form (defined below). 7. Where the Proxy Form is signed on behalf of the appointor by an attorney or a duly “Relevant Intermediary” means: authorised officer, the power of attorney or other authority (if any) under which it is (a) a banking corporation licensed under the Banking Act, Chapter 19 of signed, or a notarially certified copy of such power or authority must (failing previous Singapore, or a wholly-owned subsidiary of such a banking corporation, registration with the Manager) be lodged with the Proxy Form, failing which the whose business includes the provision of nominee services and who holds Proxy Form may be treated as invalid. Units in that capacity; 8. The Manager shall be entitled to reject a Proxy Form which is incomplete, (b) a person holding a capital market services licence to provide custodial services improperly completed or illegible or where the true intentions of the appointor are for securities under the Securities and Futures Act, Chapter 289 of Singapore, not ascertainable from the instructions of the appointor specified on the Proxy Form. and who holds Units in that capacity; or In addition, in the case of Units entered in the Depository Register, the Manager may reject a Proxy Form if the Unitholder, being the appointor, is not shown to (c) the Central Provident Fund Board (“ ”) established by the Central CPF Board have Units entered against his/her name in the Depository Register as at 72 hours Provident Fund Act, Chapter 36 of Singapore, in respect of Units purchased before the time appointed for holding the Annual General Meeting, as certified by under the subsidiary legislation made under that Act providing for the making CDP to the Manager. of investments from the contributions and interest standing to the credit of members of the Central Provident Fund, if the CPF Board holds those Units 9. All Unitholders will be bound by the outcome of the Annual General Meeting in the capacity of an intermediary pursuant to or in accordance with that regardless of whether they have attended or voted at the Annual General Meeting. subsidiary legislation. 10. On a poll, every Unitholder who is present in person or by proxy shall have one 3. A Unitholder should insert the total number of Units held in the Proxy Form (defined vote for every Unit of which he or she is the Unitholder. There shall be no division below). If the Unitholder has Units entered against his/her name in the Depository of votes between a Unitholder who is present in person and voting at the Annual Register maintained by The Central Depository (Pte) Limited (“CDP”), he/she should General Meeting and his or her proxy(ies). A person entitled to more than one vote insert that number of Units. If the Unitholder has Units registered in his/her name in need not use all his or her votes or cast them the same way. the Register of Unitholders of MGCCT, he/she should insert that number of Units. 11. CPF Approved Nominees acting on the request of the CPF/SRS investors who wish If the Unitholder has Units entered against his/her name in the said Depository to attend the Annual General Meeting are requested to submit in writing, a list with Register and registered in his/her name in the Register of Unitholders, he/she details of the CPF/SRS investors’ names, NRIC/Passport numbers, addresses and should insert the aggregate number of Units. If no number is inserted, this proxy number of Units held. The list (to be signed by an authorised signatory of the CPF form will be deemed to relate to all the Units held by the Unitholder. Approved Nominee) shall reach MGCCT’s Unit Registrar, Boardroom Corporate 4. The instrument appointing a proxy or proxies (the “Proxy Form”) must be deposited & Advisory Services Pte. Ltd., 50 Raffles Place, #32-01 Singapore Land Tower, at the office of MGCCT’s Unit Registrar, Boardroom Corporate & Advisory Services Singapore 048623 not later than 10.00 a.m. on 26 July 2016, being 72 hours before Pte. Ltd., 50 Raffles Place, #32-01 Singapore Land Tower, Singapore 048623 not the time set for the Annual General Meeting.

3rd fold Corporate Directory

Manager Corporate Services Mapletree Greater China Commercial Trust Management Ltd. Mr Wan Kwong Weng (Company Registration Number: 201229323R) Joint Company Secretary

Manager’s Registered Office Ms See Hui Hui Joint Company Secretary 10 Pasir Panjang Road #13-01 Mapletree Business City Singapore 117438 Unit Registrar T: +65 6377 6111 Boardroom Corporate & Advisory Services Pte. Ltd. F: +65 6273 2753 50 Raffles Place #32-01 W: www.mapletreegreaterchinacommercialtrust.com Singapore Land Tower E: [email protected] Singapore 048623 T: +65 6536 5355 Board of Directors1 F: +65 6438 8710 Mr Frank Wong Kwong Shing Chairman and Independent Non-Executive Director Trustee DBS Trustee Limited Mr Kevin Kwok Khien 12 Marina Boulevard Independent Non-Executive Director and Level 44 Chairman of the Audit and Risk Committee DBS Asia Central @ Marina Bay Financial Centre Tower 3 Singapore 018982 Mr Lok Vi Ming T: +65 6878 8888 Independent Non-Executive Director, F: +65 6878 3977 Chairman of the Nominating and Remuneration Committee and Member of the Audit and Risk Committee Auditor PricewaterhouseCoopers LLP Mr Michael Kok Pak Kuan 8 Cross Street #17-00 Independent Non-Executive Director and PWC Building Member of the Audit and Risk Committee Singapore 048424 T: +65 6236 3388 Mr Hiew Yoon Khong F: +65 6236 3300 Non-Executive Director and Member of the Nominating and Remuneration Committee Partner-in-charge Mr Yeow Chee Keong Mr Chua Tiow Chye (appointed since financial year ended 31 March 2015) Non-Executive Director

Ms Cindy Chow Pei Pei Executive Director and Chief Executive Officer

Management Ms Cindy Chow Pei Pei Executive Director and Chief Executive Officer

Ms Jean Low Su-Im Chief Financial Officer

Mr Ng Chern Shiong General Manager, Investment and Asset Management

Ms Elizabeth Loo Suet Quan Vice President, Investor Relations

1 As per the SGXNET announcement on 20 April 2016, Mrs Ow Foong Pheng has resigned as an Independent Non-Executive Director as well as a Member of the Nominating and Remuneration Committee with effect from 20 April 2016. Mapletree Greater China Co China Greater Mapletree mm er c ial T ial A rust nn u a l Re p o 2015/2016rt Buil d in g S tren g th shapin g g

Mapletree Greater China Commercial Trust MAnagement LTD. rowth As Manager of Mapletree Greater China Commercial Trust (Company Registration Number: 201229323R) 10 Pasir Panjang Road #13-01 Mapletree Business City Singapore 117438 +65 6377 6111 +65 6273 2753 www.mapletreegreaterchinacommercialtrust.com